Assessment of Regulatory Framework for Insurance Business in Nigeria

Abstract

The regulatory framework for insurance business in Nigeria is overseen by the National Insurance 
Commission (NAICOM). NAICOM is responsible for the regulation and supervision of all 
insurance companies and intermediaries operating in Nigeria. Overall, the regulatory framework 
in Nigeria has improved over the years, but there are still areas that need improvement. In order 
to broaden the scope of the regulatory action by the regulators, the paper selected the questions 
for research as an analysis of the legal regime and framework for insurance regulation in Nigeria 
and the challenges consequent thereto. The insurance industry is unquestionably a significant 
source of revenue for economies all over the world, In Nigeria, the difficulties have had more 
negative impact than positive impact on the industry's expected growth and development, leading 
to public apathy and discouragement. The Insurance Act of 2003 neither anticipated nor included 
these difficulties nor did it make any provisions for addressing them. Aside from them, the Act had 
good intentions because it led to many significant advancements in the insurance industry. 
However, a review or analysis of the aforementioned issues revealed opportunities for future 
development. It also highlighted the main causes of the institution's current setbacks and 
disinterest. The necessity of regulating the business has been emphasised, as has the value of 
insurance to society and economic development. With an explanation of the legislation supporting 
the exercise, the context of regulation was first explored. It was determined that regulation relates 
to both the institutions and the norms that apply to the industry