The National Insurance Commission has introduced new guidelines requiring all insurers and reinsurers to contribute to the Insurance Policyholders’ Protection Fund. The directive, announced, takes immediate effect under the Nigerian Insurance Industry Reform Act 2025.
The commission says the fund is designed to protect policyholders and beneficiaries in the event of insurer insolvency, providing a financial safety net across the industry. The framework was issued through a regulatory circular outlining the new compliance requirements.
Under the rules, insurance firms are to contribute 0.25 percent of their net premium income annually, alongside additional support from the Security and Insurance Development Fund. The move is aimed at strengthening financial resilience within the sector.
Also Read: NAICOM issues recapitalisation rules, sets July 2026 deadline
NAICOM says the policy forms part of broader reforms to restore confidence in Nigeria’s insurance industry and ensure better protection for policyholders.
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