OUR
STORY:
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.
FUNCTIONS:
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:
a. Establish standards for the conduct of insurance business in
Nigeria;
b. Approve rates of insurance premiums to be paid in respect of all
classes of insurance business;
c. Approve rates of commissions to be paid in respect of all classes of
insurance business;
d. Ensure adequate protection of strategic Government assets and other
properties;
e. Regulate transactions between insurers and reinsurers in Nigeria and
those outside Nigeria;
f. Act as adviser to the Federal Government on all insurance related
matters;
g. Approve standards, conditions and warranties applicable to all classes
of insurance business;
h. Protect insurance policy- holders and beneficiaries and third parties
to insurance contracts;
i. Publish, for sale and distribution to the public, annual reports and
statistics on the insurance industry;
j. 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;
k. Contribute to the educational programmes of the Chartered Insurance
Institute of Nigeria and the West African Insurance Institute; and
l. Carry out such other activities connected or incidental to its other
functions under this Decree.
THE COMMISSION IS ALSO EMPOWERED TO:
a. 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;
b. Requests or call for information from Federal Ministries,
Extra-Ministerial Departments, statutory bodies and other Government agencies
on matters relating to insurance;
c. Borrow such sums of money as the Commission may, from time to time,
require for performing its functions under this Decree; and
d. Acquire offices and other premises for the use of the Commission.
VISION:
“To be among the leading Regulators of the Insurance sector in the
emerging markets.”
MISSION:
“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.”
CORE VALUES:
“Transparency, Integrity, Efficiency.”
Source: NAICOM Website
