NIRA 2025 To Transform Insurance Industry, Boost Public Confidence – Brokers

Stakeholders in Nigeria’s insurance industry have expressed optimism that the Nigerian Insurance Reform Act (NIRA) 2025 will transform the sector, restore public confidence, improve claims settlement and expand insurance penetration across the country.

They said the new legislation would strengthen insurance companies through recapitalisation, promote digitalisation, attract investment, and establish a more effective regulatory framework to improve service delivery and protect policyholders.

The stakeholders also called for increased public awareness, affordable insurance products and stronger collaboration between government and industry operators to make insurance accessible to Nigerians across different income groups.

They spoke yesterday in Abuja during a monthly gathering of the Abuja Area Committee of the Nigerian Council of Registered Insurance Brokers (NCRIB), which brought together brokers, underwriters, and other insurance professionals to discuss developments in the sector and strategies to improve service delivery.

Speaking at the event, Chairman of the NCRIB Abuja Area Committee, Ojo Babajide Richard, said the gathering provided an opportunity for industry professionals to strengthen relationships, exchange ideas, and adopt best practices to improve their businesses and services to the public.

He said the insurance industry was gradually moving beyond the perception that insurance products were exclusively designed for wealthy Nigerians, noting that microinsurance had created opportunities for low-income earners to access affordable coverage.

According to him, insurance operators have developed products that enable Nigerians with modest incomes to enjoy financial protection through premiums as low as N25, N50, or N100, payable daily or monthly.

“The operators have designed various insurance tools and policies that will empower not just the elite or people who have money, but also those who earn small incomes. With microinsurance, people can access coverage with premiums of as little as N25, N50 or N100 on a daily or monthly basis,” he stated.

Richard added that digital innovation was also improving access to insurance services, allowing customers to purchase policies, conduct transactions and process claims through their mobile phones.

He described NIRA 2025 as an important regulatory framework that would guide practitioners and consumers while promoting higher professional standards and improved service delivery.

Also speaking, Treasurer of the NCRIB and Managing Director of Israel and Diamond Insurance Brokers, Mazi Chijoke Wanfo, said the new legislation would help address the longstanding trust deficit between insurance companies and the Nigerian public.

He explained that recapitalisation and stronger regulatory requirements would improve the financial capacity of insurance companies and enhance their ability to meet claims obligations.

“The trust deficit has been there before now, but thanks to NIRA 2025. The Act recently passed and signed into law has actually given clients confidence and reassured them of what the insurance industry can do,” Wanfo said.

He disclosed that the industry was targeting double-digit growth in insurance penetration, adding that the NCRIB was collaborating with state governments to promote microinsurance and the implementation of compulsory insurance policies.

Wanfo said the number of compulsory insurance categories had increased from eight to eleven under the new framework, expressing optimism that effective implementation across the states would deepen insurance penetration and increase the sector’s contribution to the nation’s Gross Domestic Product (GDP).

Similarly, Managing Director and Chief Executive Officer of Pimas Treasure Insurance Brokers, Prince Mohammed Biodun Salami, called for more aggressive public enlightenment to encourage Nigerians, particularly those in the informal sector, to embrace insurance.

Salami, who disclosed that he had spent over 35 years in the insurance industry, said practitioners were increasingly extending their services to market associations, professional groups, alum associations and other informal communities.

He identified group life insurance and critical illness policies as important products that could help Nigerians understand the practical benefits of insurance.

Citing an experience involving a beneficiary who received N2 million in critical illness benefits, he explained that such policies could provide financial assistance to people diagnosed with serious medical conditions.

“People hear critical illness and assume it means the person has already died. No. If you have good treatment and a group life policy with critical illness coverage, you can receive your benefits and use the money for medication and treatment,” he explained.

He stressed that market traders and small business owners needed greater awareness of insurance, particularly because their investments were vulnerable to unforeseen events such as fires.

Salami also urged government at all levels to demonstrate greater commitment to insuring public assets and buildings, noting that insurance protection was necessary to safeguard public investments and reduce financial losses.

Meanwhile, Managing Director and Chief Executive Officer of Enterprise Life Nigeria, Nelson Akerele, described the NCRIB Abuja Area Committee as an important platform for strengthening relationships between insurance brokers and insurance companies.

He noted that brokers played a significant role in distributing insurance products and driving industry growth.

“The brokers control over 80 per cent of the insurance business in Nigeria, and you cannot but support what is going on here,” Akerele said.

He disclosed that Enterprise Life Nigeria had received regulatory approval for four new insurance products, which the company was showcasing to insurance professionals at the gathering.

On the impact of NIRA 2025, Akerele described the legislation as a game-changer that would reshape the industry through recapitalisation, improved claims settlement, digitalisation, and increased market participation.

He said the new regulatory framework had established clearer expectations for insurance companies regarding claims payment, including defined timelines and sanctions for non-compliance.

“NIRA is a game changer for the industry. It has addressed recapitalisation, but it did not stop there. It also looked at how we do business, particularly claims settlement. You cannot continue to delay claims as before. You must pay within a defined timeline, and there are sanctions for non-compliance,” he said.

According to him, digital platforms would further enable insurance companies to expand their operations, reach more customers and improve insurance penetration across the country.

Also speaking, Chief Executive Officer of Ability Insurance Brokers and Consortium Limited, Dr Caxton Danjuma, described the new insurance legislation as long overdue, noting that it had provided a clearer operational framework for practitioners.

He said the Act would improve industry performance, strengthen public confidence, attract investors and create opportunities for innovative insurance products.

“The NIRA Act is a mirror for our performance. It provides a template, a model and a guideline for how we operate. It also gives confidence to the insuring public in terms of claims administration, insurance awareness, penetration and participation,” Danjuma said.

He expressed optimism that the recapitalisation exercise and implementation of the new regulatory framework would encourage more investment and promote innovative approaches to insurance service delivery.

Danjuma urged Nigerians to pay attention to developments in the sector, saying insurance practitioners were already aligning their operations with the provisions of the new legislation.

“Be on standby and be on the watch. You will see many innovative approaches to our businesses,” he added.