Insurance WAEC

Insurance Regulators

Gbogbo ọrọ náà

When you buy an insurance policy you hand over your premium today for a promise to be paid, perhaps years from now, if disaster strikes. That promise is only as good as the company standing behind it, and the people buying cover cannot inspect an insurer's accounts for themselves. Someone has to make sure the promise will be kept. In Nigeria that someone is NAICOM, the National Insurance Commission, backed by a ring of professional bodies that police the brokers, the loss adjusters and the insurers themselves.

This lesson sets out who guards the Nigerian insurance market and how. You will learn why a regulator is needed at all, the statutory powers of NAICOM, and the distinct jobs of the NIA, the NCRIB, ILAN and the CIIN. You will also meet the new law that reshaped the industry in 2025, the Nigerian Insurance Industry Reform Act, and see exactly where each body sits in the chain of command.

Ebumnobi

  1. Explain why the insurance industry requires a regulator
  2. State the statutory role of the National Insurance Commission (NAICOM) in supervising insurers
  3. Describe the functions of the Nigerian Insurers Association (NIA)
  4. Describe the functions of the Nigerian Council of Registered Insurance Brokers (NCRIB) and the Institute of Loss Adjusters of Nigeria (ILAN)
  5. Explain the role of the Chartered Insurance Institute of Nigeria (CIIN) in professional education and standards

Maapụ uche

E seela isiokwu a ka ị hụ otu echiche si ejikọta.

Kaadị ncheta

Omume ncheta ngwa ngwa n'ihe a na-anwale n'isiokwu a.

Akwụkwọ Ọmụmụ

Imagine a shiny new insurer opens in Lagos, undercuts every rival on premium, sells thousands of motor policies, and then quietly discovers it does not hold enough money to pay the claims rolling in. The drivers who trusted it are left with worthless certificates and wrecked cars. This is not a fable: it is exactly the collapse that a regulator exists to prevent. Insurance is a promise to pay in the future, and the whole industry rests on public confidence that the promise is real. A regulator is the referee who keeps every player solvent, honest and answerable, so that the promise holds. Understand the referees and you understand how the Nigerian market is held together.

Nnyocha Ọmụmụ

Ekele diri gi maka imecha ihe karịrị na Insurance Regulators. Ugbu a na ị na-enyochakwa isi echiche na echiche ndị dị mkpa, ọ bụ oge iji nwalee ihe ị ma. Ngwa a na-enye ụdị ajụjụ ọmụmụ dị iche iche emebere iji kwado nghọta gị wee nyere gị aka ịmata otú ị ghọtara ihe ndị a kụziri.

Ị ga-ahụ ngwakọta nke ụdị ajụjụ dị iche iche, gụnyere ajụjụ chọrọ ịhọrọ otu n’ime ọtụtụ azịza, ajụjụ chọrọ mkpirisi azịza, na ajụjụ ede ede. A na-arụpụta ajụjụ ọ bụla nke ọma iji nwalee akụkụ dị iche iche nke ihe ọmụma gị na nkà nke ịtụgharị uche.

Jiri akụkụ a nke nyocha ka ohere iji kụziere ihe ị matara banyere isiokwu ahụ ma chọpụta ebe ọ bụla ị nwere ike ịchọ ọmụmụ ihe ọzọ. Ekwela ka nsogbu ọ bụla ị na-eche ihu mee ka ị daa mba; kama, lee ha anya dị ka ohere maka ịzụlite onwe gị na imeziwanye.

  1. The statutory regulator of the insurance industry in Nigeria is the: A. Nigerian Insurers Association B. National Insurance Commission C. Chartered Insurance Institute of Nigeria D. Nigerian Council of Registered Insurance Brokers Answer: B
  2. The professional and educational body that conducts examinations for insurance practitioners in Nigeria is the: A. NCRIB B. ILAN C. CIIN D. NIA Answer: C
  3. An insurance broker who wishes to practise in Nigeria must be registered with the: A. NAICOM B. NCRIB C. NIA D. CIIN Answer: B
  4. Which of the following is a self-regulatory body for insurance companies? A. ILAN B. NCRIB C. NIA D. NAICOM Answer: C
  5. The current principal statute governing insurance business in Nigeria is the: A. Insurance Act 2003 B. NAICOM Act 1997 C. Nigerian Insurance Industry Reform Act 2025 D. Insurance Companies Act 1961 Answer: C

Akwụkwọ A Na-atụ Aro

Principles of Risk Management and Insurance
Principles of Risk Management and Insurance
Ìkọ̀wé-àbáojú: Thirteenth edition
Onye Mbipụta: Pearson
Afọ: 2016
ISBN: 978-0-13-408257-8
Akọkọ ọrọ.: The standard introduction to risk and insurance, covering risk management, insurer operations and the main lines of life, health, property and liability cover.
Fundamentals of Risk and Insurance
Fundamentals of Risk and Insurance
Ìkọ̀wé-àbáojú: Tenth edition
Onye Mbipụta: Wiley
Afọ: 2008
ISBN: 978-0-470-08753-4
Akọkọ ọrọ.: A clear account of the nature of risk and the economics of insurance, written for beginning students across life, health, property and liability insurance.
Fundamentals of Insurance
Fundamentals of Insurance
Ìkọ̀wé-àbáojú: Second edition
Onye Mbipụta: Himalaya Publishing House
Afọ: 2017
ISBN: 978-93-5097-079-9
Akọkọ ọrọ.: An accessible treatment of insurance in four parts: the basics of risk, insurance management, life insurance and non-life insurance.

Ajụjụ Nnyocha

Nna, you dey wonder how past questions for this topic be? Here be some questions about Insurance Regulators from previous years.

WAEC SSCE - Insurance - 2018

Ajụjụ 1 Ripọtì

 (a) State three roles of National Insurance Commission.

(b) List and explain three methods of providing indemnity. 
 

Akọwa Nkọwa

(a) Three roles of the National Insurance Commission (NAICOM)

  1. To regulate, supervise and control the insurance business in Nigeria, ensuring companies operate within the law.
  2. To register, license and where necessary cancel the registration of insurers, reinsurers, brokers and loss adjusters.
  3. To protect the interests of policyholders and the public by ensuring insurers remain solvent and settle genuine claims, and to approve rates, terms and conditions of insurance.

(b) Three methods of providing indemnity

  1. Cash payment: The insurer settles the claim by paying the insured a sum of money equal to the amount of the loss, this being the commonest method.
  2. Repair: The insurer restores the damaged property to its former condition by arranging and paying for its repair, as is common in motor insurance.
  3. Replacement: The insurer provides a new article in place of the one lost or damaged, restoring the insured to his former position, as sometimes done with glass or jewellery.
  4. Reinstatement: The insurer rebuilds or reinstates property, for example a building destroyed by fire, to its pre-loss condition.
Lee Azịza