Naicom decries obsolete insurance laws
You're referring to the recent statement by NAICOM (National Insurance Commission of Nigeria) regarding the need to review and update Nigeria's insurance laws to align with modern industry standards.
For those who may not be familiar, NAICOM is the regulatory body responsible for supervising and regulating the insurance industry in Nigeria. In a recent statement, the commission expressed concerns about the outdated nature of Nigeria's insurance laws, which it believes are hindering the growth and development of the industry.
According to NAICOM, the current laws are no longer effective in addressing the needs of the modern insurance industry, which has evolved significantly over the years. The commission cited the need for more robust regulations to ensure the stability and solvency of insurance companies, as well as to protect the interests of policyholders.
Some of the specific issues highlighted by NAICOM include:
- Lack of clarity on the definition of insurance: The commission believes that the current laws do not provide a clear definition of insurance, which can lead to confusion and ambiguity in the industry.
- Inadequate regulation of insurance products: NAICOM expressed concerns that the current laws do not provide sufficient guidance on the regulation of insurance products, which can lead to the sale of unsuitable products to policyholders.
- Limited powers of the commission: The commission believes that its powers are limited, which can hinder its ability to effectively regulate the industry and protect the interests of policyholders.
- Lack of penalties for non-compliance: NAICOM expressed concerns that the current laws do not provide sufficient penalties for insurance companies that fail to comply with regulatory requirements, which can undermine the effectiveness of regulation.
To address these issues, NAICOM is advocating for the review and update of Nigeria's insurance laws to ensure that they are more effective in regulating the industry and protecting the interests of policyholders. The commission believes that this will help to promote the growth and development of the insurance industry, which is critical for the overall development of the Nigerian economy.
It's worth noting that the review and update of insurance laws is an ongoing process, and NAICOM is working closely with other stakeholders, including the National Assembly and the insurance industry, to ensure that the new laws are effective and efficient.