NAICOM releases new guidelines to all insurance institutions for collection, management and administration of insurance policyholder’s protection fund

The National Insurance Commission has issued a new guideline to all insurance institutions for the collection, management, and administration of the insurance policyholder’s protection fund. In the circular sent out to all insurers, the regulator stated that ‘’In exercise of the powers conferred on the National Insurance Commission (NAICOM), by the Nigerian Insurance Industry Reform Act 2025 and other extant insurance laws and regulations, the Commission hereby issues the attached Guidelines for the Collection, Management, and Administration of the Insurance Policyholders’ Protection Fund (the Fund).’’

According to the statement, ‘‘The Guidelines ensure regulatory clarity, guidance and ease compliance, as it provides a comprehensive regulatory framework for the collection, management, and administration of the Fund which serves as a statutory safety net designed to protect insurance policyholders against distress and insolvency of a licensed insurer or reinsurer, including guidance for the reimbursement of loans by an insurer or reinsurer.

The Commission therefore warned that the ‘‘Insurance Policy Protection Fund ( IPPF) Assessment Returns in respect of the year 2025 shall be submitted to the Commission not later than 31st May 2026, while subsequent submission shall be in line with Section 4.3 of the Guideline on Insurance Policyholders Protection Fund. All insurers, reinsurers and relevant insurance institutions are required to ensure strict compliance with this Guidelines. Please accept the assurances of the Commission’s best wishes. John Falade Deputy Director, Special Risk & Security Analysis For: Commissioner for Insurance.’’

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