New Insurance Draft Bill Undergoes Review

A new Insurance Draft Bill is currently undergoing review for presentation to the Federal Executive Council and the National Assembly.

Mr Fola Daniel, Commissioner for Insurance, National Insurance Commission (NAICOM), announced this in a press statement in Lagos.

Daniel recalled that the commission had held a retreat in Nasarawa with members of the House of Representatives Committee on Finance and Insurance on the bill.

He said that the retreat enabled the members of the committee to appreciate the challenges which a weak legal framework posed to the regulation and supervision of the insurance industry.

“The draft bill is expected to be passed to the Federal Executive Council soon for onward presentation to the National Assembly,” Daniel said.

According to him, poor legal framework, poor perception of the sector and inadequate awareness among the populace is making the realisation of the various initiatives and reform which the commission had begun difficult.

He said it was germane though that it was the realisation of this fact that prompted the Federal Government to establish a committee in 2009 to review all laws and regulations relevant to insurance.

Daniel said that it was the job done by the committee, which was chaired by Prof. Joe Irukwu, that culminated in the new bill which the Federal Ministry of Finance was currently reviewing.

He said that a new tax law would engender a robust legal and regulatory framework and ensure that “the sector contributes to the objective of the Financial System Strategy 2020 (FSS 2020)”.

The commissioner said that there was the need to ensure ethical and international best practices as required by the International Association of Insurance Supervisors (IAIS).

Daniel also said that there was the need for a legal and regulatory framework that allowed the supervisory authority to deal promptly with issues emanating from the dynamism of the insurance business.

He said that the draftbill consolidated and harmonised the various extant legislation for effective and efficient regulation, supervision and sound insurance practice in Nigeria.

According to him, the existing legal framework often creates uncertainty in underwriting processes, regulatory inconsistencies and conflict of laws, among others.