Insurance Regulators

Aperçu

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.

Objectifs

  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

Note de cours

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.

Évaluation de la leçon

Félicitations, vous avez terminé la leçon sur Insurance Regulators. Maintenant que vous avez exploré le concepts et idées clés, il est temps de mettre vos connaissances à lépreuve. Cette section propose une variété de pratiques des questions conçues pour renforcer votre compréhension et vous aider à évaluer votre compréhension de la matière.

Vous rencontrerez un mélange de types de questions, y compris des questions à choix multiple, des questions à réponse courte et des questions de rédaction. Chaque question est soigneusement conçue pour évaluer différents aspects de vos connaissances et de vos compétences en pensée critique.

Utilisez cette section d'évaluation comme une occasion de renforcer votre compréhension du sujet et d'identifier les domaines où vous pourriez avoir besoin d'étudier davantage. Ne soyez pas découragé par les défis que vous rencontrez ; considérez-les plutôt comme des opportunités de croissance et d'amélioration.

  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

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Questions précédentes

Vous vous demandez à quoi ressemblent les questions passées sur ce sujet ? Voici plusieurs questions sur Insurance Regulators des années précédentes.

WAEC SSCE - Insurance - 2018

Question 1 Rapport

 (a) State three roles of National Insurance Commission.

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

Voir la réponse