00:00Nigeria's insurance industry is set for its biggest shake-up in nearly two decades.
00:06President Bola Ahmed Tsunabu has signed the Nigerian Insurance Industry Reform Act 2025,
00:13a sweeping law aimed at modernizing operations, boosting investor confidence, and protecting
00:19policy orders. The NIIRA 2025 repels several outdated laws, consolidating them into a single
00:28modern framework. It raises the bar for insurance operators, introducing stringent capital requirements
00:36at 15 billion naira for non-life insurers, 10 billion naira for life assurance firms,
00:42and 35 billion naira for reinsurance companies. The Act also expands compulsory insurance coverage
00:50beyond mortal and group life policies, bringing in new categories such as agriculture, SMEs,
00:57public infrastructure, and cyber liability. A major shift comes with the mandatory digitalization
01:04of the insurance value chain, from underwriting to claim processing, aimed at cutting fraud,
01:11improving efficiency, and widening assets. For consumers, the law enforces zero tolerance for
01:18delayed claim settlement and creates policy orders protection funds to safeguard customers if an
01:24insurer becomes insolvent. The reforms are already making waves in the capital market. Within 24 hours
01:33of the bill's signing, insurance stocks in the Nigerian exchange surged by 10%, with 15 out of 17 listed
01:41firms recording gains. The recapitalization is set to strengthen Nigerians' competitiveness under
01:49AFCFTA, attract significant new investment and raise insurance penetration between 3 and 5% of GDP within the next decade.
02:01The message from NIIRA 2025 is clear. Nigeria's insurance industry must transform,
02:09embrace transparency, and put policy orders first, or risk being left behind.
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