Insurance Sector Set for Major Overhaul as Senate Approves IRC Bill

The Nigerian Senate has passed a bill to rename the National Insurance Commission (NAICOM) as the Insurance Regulatory Commission (IRC) as part of efforts to strengthen insurance regulation and modernise the legal framework governing the industry.
The legislation seeks to protect the Commission and its officers from adverse claims arising from the execution of their statutory responsibilities. Lawmakers also explained that the name change became necessary because the existing designation no longer reflects the current structure and realities of Nigeria’s insurance industry.
The bill, titled the National Insurance Regulatory Commission (Repeal and Re-Enactment) Bill, 2026 (SB.394), was passed after the Senate considered the report of its Committee on Banking, Insurance and Other Financial Institutions, chaired by Senator Adetokunbo Abiru (APC, Lagos East). The legislation was sponsored by Senator Abiru alongside members of the committee.
Presenting the report, Senator Abiru noted that the Commission was established under the National Insurance Commission Decree of 1997 to regulate insurance companies, brokers and loss adjusters, protect policyholders, monitor financial solvency and enforce compliance across the industry.
He said although NAICOM has played a significant role in promoting standards and developing the insurance market, its enabling law has become outdated and no longer aligns with present-day realities or global best practices, creating gaps that require urgent legislative intervention.
According to him, the new bill strengthens the independence of the Commission by granting it greater regulatory authority and operational autonomy. It also empowers the Commission to collaborate with domestic and international regulatory bodies, issue regulations and directives, and take stronger intervention measures where necessary.
Abiru explained that the rebranded Insurance Regulatory Commission will have enhanced powers to address financially distressed insurers, protect policyholders, preserve financial stability and facilitate the orderly resolution of failing insurance institutions.
He added that the legislation also introduces stricter qualifications for members of the Commission’s Governing Board, ensuring that only professionals with expertise in insurance, risk management, finance, law and corporate governance, as well as proven integrity, are appointed to guide the Commission’s policies and regulatory framework.
Following the passage of the bill after its third reading, the National Insurance Commission (NAICOM) will officially transition to the Insurance Regulatory Commission (IRC), subject to the remaining legislative processes.