The Senate has passed a bill to repeal and re-enact the law establishing the National Insurance Commission (NAICOM), paving the way for the regulatory agency to be renamed the Insurance Regulatory Commission (IRC).

The legislation, titled the Insurance Regulatory Commission (Establishment) Bill, 2026, was passed after the Senate considered and adopted the report of its committee on banking, insurance and other financial institutions.

Chairman of the committee, Senator Adetokunbo Abiru (APC, Lagos East), who presented the report, stated that the proposed legislation was necessary because the existing National Insurance Commission Act of 1997 had become outdated and no longer reflected the realities of Nigeria’s evolving insurance industry or global regulatory standards.

According to the Senate, the decision to change the Commission’s name was informed by the need to eliminate confusion associated with the existing designation and to better reflect the institution’s regulatory mandate within Nigeria’s insurance industry.

The bill also provides legal protection for the Commission and its officers against adverse claims arising from the lawful execution of their statutory duties.

He, however, noted that the Commission’s enabling law had become obsolete, exposing significant regulatory gaps that required urgent legislative intervention.

‘The current National Insurance Commission Act 1997 is outdated and does not adequately address the emerging economic growth, needs and development of the insurance business,” the lawmaker said.

He explained that the new legislation seeks to strengthen the independence of the Commission by empowering it to make regulatory decisions without undue influence.

According to him, the bill also enhances the Commission’s authority to exchange information and collaborate with domestic and international regulatory bodies, issue regulations, guidelines, standards and directives on insurance-related matters, and intervene more effectively in financially distressed insurance companies to protect policyholders and preserve financial stability. (Channels TV)

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