Yemisi Izuora
The National Insurance Commission (NAICOM) has said that it remains committed to providing the regulatory oversight to boost insurance growth in the country.
The Commissioner for Insurance, Olusegun Omosehin, gave the assurances during the inauguration of the Insurance Policyholders’ Protection Fund Committee (IPpF).
The Commissioner also pledged to provide technical support, and institutional backing required for the Committee to succeed.
At the same time, this Fund belongs to the insurance industry, (Insurance Consumers), and must therefore be administered with independence, professionalism, and a clear focus on policyholder protection.
He said the inauguration marks a major step in strengthening confidence in Nigeria’s insurance market and deepening consumer protection.
“With the establishment of the Insurance Policyholders’ Protection Fund Committee pursuant to Section 212 of the Nigerian Insurance Industry Reform Act, NIIRA 2025, we are moving from policy intent to institutional protection that gives policyholders greater assurance and gives the market greater credibility.” Omosehin stated.
The Objective of this Committee in line with the statutory provision is to: Ensure protection of policyholders and beneficiaries covered under an insurance policy in Nigeria,Ensure timely and accurate collection of contributions to the Fund,Establish sound management and investment practices for the Fund, Provide procedures for disbursement and recovery of loans from the Fund and Promote transparency, accountability, and governance in the administration of the Fund.
The fund shall be used for the purpose of resolving distress and insolvencies of licenced insurers and Reinsurers or as a result of cancellation of licence.
The IPPF is a statutory safety net for policyholders when an insurer becomes insolvent or is unable to meet its obligations. Its value goes beyond compensation: it protects households and businesses from avoidable loss, reinforces trust in insurance as a reliable promise, and helps preserve stability across the market.
The NIIRA 2025 reflects the Federal Government’s commitment to a stronger, more resilient, and consumer-centric insurance industry.
The legal foundation is now in place; the task before us is disciplined execution that ensures the Fund is credible, well governed, and effective when policyholders need it most.
“Your inauguration today is not ceremonial; it is the start of a serious governance responsibility. The Committee’s mandate is to ensure that the Fund is sustainably financed, professionally managed, and capable of delivering timely and fair protection to policyholders.” he said
The Fund is to among other priorities,Ensure timely contributions, prudent stewardship of assets, and sound controls that protect the Fund’s long-term sustainability,Establish transparent processes that support prompt claims decisions, consistent administration, and public confidence in the Fund and Maintain clear reporting and high governance standards so that industry stakeholders and the public can trust the Committee’s decisions.
He informed them that, “You have been selected because of your accomplishments, expertise and integrity, but those qualities must now translate into results. The credibility of the IPPF will be measured by the discipline of its governance, the fairness of its decisions, and the confidence it inspires across the market.”
The Guidelines are designed to protect policyholders while preserving the solvency and competitiveness of insurers. We expect the Committee to uphold that balance through disciplined judgment, operational readiness, and unwavering professionalism.
The Commissioner added, “The inauguration of this Committee today therefore sends a clear signal to the market and the public that consumer protection is central to the future of insurance in Nigeria. If implemented with credibility and consistency, the IPPF will strengthen trust, support deeper market participation, and advance the broader goals of financial inclusion and economic stability.
“I urge you to approach this assignment with urgency and a clear sense of duty to Nigerian public. Millions of Nigerians rely on insurance to protect their homes, businesses, health, and future, and they will judge this Fund by its readiness to respond fairly and effectively when it is called upon.”