NAICOM - National Insurance Commission | www:naicom:gov:ng - Nigeria


About the National Insurance Commission (NAICOM)

The National Insurance Commission is a statutory agency of the Federal Government of Nigeria established by the law to regulate and supervise the Nigerian Insurance Sector. The Commission derives its regulatory powers from the National Insurance Commission Act 1997 and the Insurance Act 2003. The principal object of the Commission is to ensure the effective administration, supervision, regulation and control of insurance business in Nigeria. Accordingly, insurance/reinsurance companies, Insurance Brokers, Loss Adjusters and Agents fall within the regulatory purview of the Commission.


The MDRI project is a medium term plan (2009-2012 of installing the first phase of the necessary reforms in the areas of Industry capacity, Market efficiency and Consumer protection in the Nigerian Insurance market. It would deepen and grow the insurance market and move the industry gross premium form N164billion (2008) to I.0 trillion 2012.

Benefits of the Project

At the end of the plan period (2012) the following benefits are expected to be achieved by the Insurance market:
  • Increase in industry gross premium from N164.50billion (2008) to N1.0trillion by 2012 
  • Direct project revenue of N800.0m to NAICOM from implementing the project. 
  • Indirect project revenue to NAICOM from increase in ISS levy to N12 billion 
  • Revenue to Fire Service by way of fire service maintenance fund 
  • Creation of about 250,000 jobs in the insurance industry 
  • Lowering of insurance gap from 94% to 70% 
  • Increase in insurance contribution to GDP from 0.72%to over 4% 
  • Building consumer trust and confidence in the Nigerian insurance Market

Project Content

“MDRI” Focuses on Four (4) key Issues: 
  1. Enforcement of Compulsory Insurance Products in Nigeria
  2. Sanitization and Modernization of Insurance Agency System
  3. Wiping-out of Fake Insurance Institutions
  4. Introduction of Risk-based Supervision

i)    Enforcement of Compulsory Insurance Products in Nigeria-
There are 6 insurance products made compulsory by law by the Insurance Act 2003 and other sister legislations and the Commission intends to enforce these products. They are:-
  1. Group life Insurance in line with the Pencom Act 2004
  2. Employers liability in line with the Workmen’s Compensation Act 1987
  3. Buildings under construction-section 64 of the Insurance Act 2003
  4. Occupiers liability insurance –section 65 of the Insurance Act 2003
  5. Motor Third party Insurance –section 68of the Insurance Act 2003 
  6. Health care Professional indemnity insurance-under section 45 of the NHIS Act 1999

ii)    Sanitization and modernization of Insurance Agency System
The introduction of the Network Agency system which would expand the insurance penetration and provide employment to thousands of Nigerians.

iii)    Wiping out of fake insurance institutions
The setting up of enforcement teams in all the 36 states of the federation to monitor compliance with the compulsory insurances. The teams would comprise of the Police, VIO, FRSC, Fire Service, Planning authorities, CORBON, NIA, NCRIB etc.The teams have been constituted and are ready to take off.

iv)    Introduction of Risk Based supervision
The movement from compliance based supervision to risk based supervision is the way to go in order to reduce stress and distress from the system.


The implementation commenced with the Commissioner for Insurance inviting all CEOs of Insurance companies on the 26th August 2009 in order to formally launch the products of the MDRI and intimate them of the launching:
The next stage was the workshop for underwriters conducted on the 15 and 16th of September 2009 in order to acquaint them with the policy documents wordings and proposal forms.


The next stage is the sensitization of the Nigerian public through massive print and electronic media as well as bill boards all over the country. The printing of pamphlets and booklets for distribution would also commence. Radio and Television jingles will also commence in earnest at various radio and TV stations identified all over the country. It is pertinent to understand that the public must first of all be aware of the existence of these products before enforcement can commence. It would also serve to educate the public on the benefits and gains of insurance.

Launching of the Products

The launching of the products will be conducted at all the (6) Geo-Political zones including Abuja and Lagos. It is planned that the first launching would take place in Ibadan.
The launching will also take place at the following cities:
  •      Ibadan
  •      Kano
  •      Portharcourt
  •      Enugu
  •      Sokoto
  •      Maiduguri
  •      Abuja
  •      Lagos

The Governors would be invited to the launching which would be open to all stake holders. Arrangements have commenced in earnest and the assistance of Board members would be solicited for making contacts with the various Governors for Courtesy Visit by The CFI and some Board Members.


All in all, the Commission expects to spend quite substantial sums in implementing this project but at the end of the day the gains derivable to the Country, industry and NAICOM would be quite enormous.


To be among the leading regulators of the insurance sector in the emerging markets


To conduct effective supervision of the Nigerian Insurance industry for the attainment of a high ethical standard needed to position the industry as a leading market in the global economy.


Transparency, Integrity and Efficiency (TIE)

The first major step at regulating the activities of Insurance business in Nigeria was the report of J.C. Obande Commission of 1961, which resulted in the establishment of Department of Insurance in the Federal Ministry of Trade and which was later transferred to the Ministry of Finance. The report also led to the enactment of Insurance Companies Act 1961, which came into effect on 4th May 1967.

The 1961 Act focused mainly on the activities of direct Insurers, made provisions for Registration and Record keeping. In 1968, Insurance Companies regulations was put in place to facilitate the implementation of Act No 58 of 1961 which then classified Insurance business into different classes for registration purpose and relevant forms for record keeping.

Insurance Decree No 59 of 1976 was enacted putting together the provisions of the various laws. The 1976 Decree among others made the following provision; Condition for authorisation of Insurers, Mode of operation, Amalgamation and Transfer, Administration and Enforcement, Penalties.

The Insurance Decree No 59 of 1976 constituted the first All-embracing Law for the regulation and Supervision of Insurance business in Nigeria.

In 1968, concern was given to life Insurance business and it led to the enactment of Decree 40 of 1988 which made provisions among others for Assignment of Life Insurance Policy, named beneficiary on Life insurance policy document.

The Federal Government of Nigeria promulgated the Insurance Special Supervisory Fund (ISSF) decree 20 of 1989 to strengthen the manpower need of the Insurance Supervisory Board. That decree mandated all insurance companies to contribute 1% of their gross earning to the Fund.

Decree No 58 of 1991 was enacted improving provisions of Decree No 58 of 1979 and No 40 of 1988. The major highlights of 1991 Decree include; Increased paid-up share capital of insurers and Re-insurers in respect of non-life business and life business respectively, compulsory membership of trade associations; management of security fund by NIA; Practice of no-premium, no-cover.

In 1992, the Insurance Special Supervision Fund decree No 62 was enacted, establishing a body known as National Insurance Supervisory Board, bringing out Insurance supervision outside core civil service, changing designation of Chief Executive from Director of Insurance to Commissioner for Insurance and setting up the Board of Directors to oversee the affairs of the established Body. All this provisions were made to attract high level manpower. The provision of Decree No 62 of 1992 and 58 of 1991 were reviewed for effective supervision and efficient Insurance market, bringing into enactment Decree Numbers 1 & 2 of 1997, National Insurance Commission and Insurance Decree respectively.

The following provisions were made in reviewing decree No 62 of 1992, decree No 1 of 1997; change of name from National Insurance Supervisory Board to National Insurance Commission, Establishment of Governing Board, Staffing, Source and application of funds, control and management of failed and failing Insurance companies, supervisory functions and powers.

Decree No 58 of 1991 was improved on with decree No 2 of 1997 in the following areas; by raising the paid up share capital for different categories of Insurance companies, qualification of Chief Executive, Insurance of Government properties and so on.


Objects, Functions and Powers of the Commission 
The principal object of the Commission is to ensure the effective administration, supervision, regulation and control of insurance business in Nigeria.

The functions of the Commission include the following:

  1. Establish standards for the conduct of insurance business in Nigeria; 
  2. Approve rates of insurance premiums to be paid in respect of all classes of insurance business; 
  3. Approve rates of commissions to be paid in respect of all classes of insurance business; 
  4. Ensure adequate protection of strategic Government assets and other properties; 
  5. Regulate transactions between insurers and reinsurers in Nigeria and those outside Nigeria; 
  6. Act as adviser to the Federal Government on all insurance related matters; 
  7. Approve standards, conditions and warranties applicable to all classes of insurance business; 
  8. Protect insurance policy- holders and beneficiaries and third parties to insurance contracts; 
  9. Publish, for sale and distribution to the public, annual reports and statistics on the insurance industry; 
  10. Liaise with and advise Federal Ministries, Extra Ministerial Departments, statutory bodies and other Government agencies on all matters relating to insurance contained in any technical agreements to which Nigeria is a signatory; 
  11. Contribute to the educational programmes of the Chartered Insurance Institute of Nigeria and the West African Insurance Institute; and 
  12. Carry out such other activities connected or incidental to its other functions under this Decree. 

The Commission is also empowered to: 
  1. Establish a Bureau to which complaints, against any insurer, reinsurer, insurance broker or loss adjuster (in this Decree referred to as "insurance institution") may be submitted by members of the public; 
  2. Requests or call for information from Federal Ministries, Extra-Ministerial Departments, statutory bodies and other Government agencies on matters relating to insurance; 
  3. Borrow such sums of money as the Commission may, from time to time, require for performing its functions under this Decree; and
  4. Acquire offices and other premises for the use of the Commission.


Life Insurance ....................................15
Non Life Insurance .............................29
Composite Insurance ..........................12
Re-Insurance Insurance ....................... 2


Total Net Premium ............ (N)271,800,000,000BN
Total Gross Premium ........ (N)302,000,000,000BN
+Increase / -Decrease
TGP ........................... (%)+10.55


Reinsurance Insurance ......... 2
Underwriters Insurance ......... 58
Brokers Insurance ................... 577
Loss Adjusters Insurance ....... 54
Agents Insurance ..................... 1900


Plot 1239, 
Ladoke Akintola Boulevard,
Garki II, 
PMB 457 Garki,
Abuja, Nigeria. 
Telephone:  092915101

Alagbon, Ikoyi Road,  
PMB 80144,
Victoria Island,
Lagos, Nigeria
Telephone: +234-1-7406590, 9515654, 73477644, 2133189

C1 Presidential Road,
P.O. BOX 2304, Enugu,
Enugu State.
Telephone: +234-042-7406590 9515654

No 162, Farm Centre Road. 
Kano State. 
Telephone: +234-064-667283   

No 32,Onne Road
G.R.A Phase 2
Via Airtel Office
Rivers State.
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