Senate votes to rename NAICOM to Insurance Regulatory Commission

The Senate on Tuesday passed a bill to rename the National Insurance Commission (NAICOM) as the Insurance Regulatory Commission.

The upper chamber approved the bill after reviewing the report from its Committee on Banking, Insurance and Other Financial Institutions. The committee's chairman, Adetokunbo Abiru, presented the report.

Senate President, Godswill Akpabio, announced the bill’s approval after it got majority support through a voice vote.

Mr Abiru sponsored the bill with other members of the Senate Committee on Banking, Insurance and Other Financial Institutions.

While presenting the committee’s report, Mr Abiru said the name change is needed because the current name is confusing. He said it does not reflect the commission’s role in Nigeria’s changing insurance industry.

NAICOM is Nigeria’s top regulatory body for the insurance sector. It makes sure that insurance laws and regulations are followed, promotes market stability, and protects policyholders.

Besides changing the name, Mr Abiru noted that the bill includes stricter enforcement measures. This means higher fines, suspension of licenses, and barring individuals responsible for insurance failures from working in the industry.

He added that the bill also updates rules on supervision and inspection. This is to tackle current challenges in the industry. For instance, it requires prior ministerial approval to remove or appoint directors of failing insurance companies. The bill also states that the Minister of Finance must form an interim management committee for NAICOM within 30 days of the end of its governing board's term.

Mr Abiru mentioned that the new law broadens the commission’s role. It aims to ensure proper management, supervision, regulation, and growth of insurance businesses in Nigeria.

After the committee’s report, the Senate went into the Committee of the Whole. There, they reviewed the bill clause-by-clause and passed it for a third reading.

Mr Akpabio praised Mr Abiru for sponsoring the bill. He promised that the National Assembly will keep working to make the insurance industry stronger and more effective than before.

The bill will now go to the House of Representatives for agreement before it is sent to President Bola Tinubu for approval.