Tinubu signs landmark Nigerian insurance industry reform act 2025 into law.

President Bola Ahmed Tinubu has signed the Nigerian Insurance Industry Reform Act (NIIRA) 2025 into law, aiming to strengthen Nigeria's financial sector and propel the country towards a $1 trillion economy. This landmark legislation introduces sweeping reforms to modernize the insurance industry, enhance consumer protection, attract investments, and improve operational efficiency.

*Key Provisions of the NIIRA 2025:*

- *Higher Capital Thresholds*: Insurance operators must meet stringent capital requirements to ensure financial soundness and stability, potentially triggering mergers and acquisitions among undercapitalized players.
- *Mandatory Insurance Policies*: Compulsory insurance coverage for sectors like agriculture, SMEs, public infrastructure, and cyber liability to protect lives and property.
- *Digitization*: End-to-end digital platforms for underwriting, claims processing, policy management, and customer onboarding to improve efficiency and reduce fraud.
- *Strict Claims Settlement Timelines*: Zero tolerance for delayed claims settlement, with penalties for undue delays to restore trust and accountability.
- *Policyholder Protection Funds*: Dedicated funds to safeguard policyholders' interests in cases of insurer insolvency or failure.
- *Expanded Regional Participation*: Enhanced participation in regional insurance schemes, including the ECOWAS Brown Card System.

*Impact and Expectations:*

- *Increased Insurance Penetration*: Industry analysts expect the new law to catalyze fresh investments, boost consumer confidence, and significantly improve insurance penetration across Nigeria.
- *Economic Growth*: The reforms are designed to promote economic growth, protect policyholders' interests, and attract investments into the sector.
- *Regulatory Framework*: The National Insurance Commission (NAICOM) will regulate and supervise all insurance and reinsurance businesses operating within Nigeria, ensuring compliance and market discipline.