Victor EzejaManaging Director, Cowry Asset Management, Mr Johnson Chukwu, has commended the Nigerian government for enacting the new insurance law, saying it has key provisions that will address the problems limiting the growth of the insurance industry in the country.
President Bola Tinubu had on Tuesday signed the Nigerian Insurance Industry Reform Act (NIIRA) 2025, as part of measures to boost the country’s financial sector in line with the agenda of achieving a one trillion dollar economy in the next five years.
Join our WhatsApp ChannelChukwu, who featured on Channels Television’s Morning Brief on Wednesday, said every aspect of the Act is important in improving policyholders’ confidence in the insurance industry.
He said some of the factors limiting the growth of the insurance industry in the country include the challenge of claims payment, as a lot of people who take on policies have challenges getting their payments.
According to him, one of the factors affecting claims payment is the low capitalisation of the insurance companies in Nigeria.
Prime Business Africa reports that NIIRA 2025 made a provision for robust capitalisation of the insurance industry in the country.
Chukwu observed that the provision for Policyholder Protection Fund in the Act would further engender confidence in people who would like to take a policy with any of the insurance companies.
On the issue of delay in claims payment, the financial expert stated that, as provided in the new insurance law, the National Insurance Commission (NAICOM) would step in to ensure timely enforcement.
He also hailed the provision for digitalisation of the insurance market to improve access and efficiency.
“Every component of this Act will go towards enhancing policyholders’ confidence that when they take on an insurance policy, they will be indemnified when the need arises,” Chukwu stated.
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He further pointed out that, as provided in the law, there are some types of insurance that are compulsory, meaning that the citizens are compelled to take them for the orderly function of the society.
He emphasised that the law has put a system in place to ensure that there is no delay in paying claims to policyholders.
He called for simplification of insurance policies for easy comprehension of the dos and don’t’s by policyholders to avoid disqualification when they make claims because of lack of awareness.
On the importance of a robust insurance industry to the national economy, Chukwu said insurance builds reserves over time and becomes a major investor in the financial market, as is obtainable in some other countries like South Africa.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
