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  The Insurance industry across the world is highly regulated. This is because of the place of insurance in the economy of any country.
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In Nigeria, the Insurance industry is regulated by the National Insurance Commission (NAICOM). This Commission is an agency of the Federal Government and is charged by law to provide the operational framework for the business of insurance in Nigeria and to provide monitory and regulatory frameworks for same.

Establishment

The National Insurance Commission (NAICOM) was established under General Sani Abacha as Head of State. This establishment followed the promulgation of the National Insurance Commission Decree 1997. The law establishing NAICOM was amended and signed into law on 27th May 2003 by President Olusegun Obasanjo, as the Insurance Act, 2003. NAICOM_Act_1997 Insurance_Act So, NAICOM is established by law as Commission of the Federal Government of Nigeria with the responsibility to ensure the effective administration, supervision, regulation and control of insurance business in Nigeria and protection of insurance policyholders, beneficiaries and third parties to insurance contracts.

The Mandate Of NAICOM

According to the laws establishing the National Insurance Commission, the mandate of the Commission is to among all other things discharge the following functions:
  • To establish standards for the conduct of insurance business in Nigeria;
  • To approve rates of insurance premiums to be paid in respect of all classes of insurance business;
  • Ensure adequate protection of strategic Government assets and other properties;
  • Regulate transactions between insurers and reinsurers in Nigeria and those outside Nigeria;
  • Act as an adviser to the Federal Government on all insurance-related matters;
  • Approves standards, conditions and warranties applicable to all classes of insurance business;
  • Protect insurance policyholders, beneficiaries and third parties to insurance contracts;
  • Publish for sale and distribution to the public, annual reports and statistics of the insurance industry;
  • Liaise with and advise Federal Ministries, Extra Ministerial Departments, statutory bodies and other Government Agencies on all matters relating to insurance contained in any technical agreements to which Nigeria is a signatory;
  • Contribute to the educational programmes of the Chartered Insurance Institute of Nigeria and West African Insurance Institute, and carry out other such activities connected or incidental to its other functions under the Act.

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The Structure Of NAICOM

The National Insurance Commission is set up as a body corporate with perpetual succession and a common seal and may sue and be sued in its corporate name. The leadership of the Commission is under the auspices of a Governing Body that has within it the following:
  • A part-time Chairman;
  • A representative each of – the Federal Ministry of Finance not below the rank of a Director, the Central Bank of Nigeria not below the rank of a Director, the Chartered Insurance Institute of Nigeria, the Federal Ministry of Commerce and Tourism;
  • Three part-time members to represent the interest of the public;
  • The Commissioner of Insurance; and
  • The two Deputy Commissioners of the Commission.
The current chairman of this board is Chief Emmanuel Jideofor Nwosu while the Commissioner of Insurance is Mr Thomas Olorundare Sunday. As Commissioner of Insurance, Mr Sunday doubles as the CEO of the National Insurance Commission (NAICOM) and sees to the day-to-day running of the Commission.

What NAICOM Can Do For You

As aforementioned, the Commission is charged with the regulation of the Insurance industry in Nigeria. What this means is that NAICOM can provide you with all the necessary information you need to purchase an insurance policy and when you have a complaint, NAICOM also can ensure such is resolved according to existing laws and principles. Before taking out an insurance cover with a company or broker, do well to check them out on the NAICOM website or portal to ensure they are licensed to provide insurance services in Nigeria. In addition, you can also verify the validity of the insurance policy sold to you using the NAICOM portal.

NAICOM Contact Details

Head Office: Plot 1239, Ladoke Akintola Boulevard, Garki II Abuja. Email: contact@naicom.gov.ng Portal: www.portal.naicom.gov.ng Website: www.naicom.gov.ng Featured Image Source: Businessday NG
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This article was first published on 22nd January 2022 and updated on January 25th, 2022 at 11:02 pm

victor-ifegwu-mbonu

Ifegwu-Mbonu Victor is a Personal Growth and Leadership Trainer who provides training and coaching to individuals and organizations.


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