NAICOM Launches Insurance Policyholders’ Protection Fund, Mandates 0.25% Contributions from Insurers with May 31 Deadline
The National Insurance Commission (NAICOM) has introduced the Insurance Policyholders’ Protection Fund (IPPF), a major consumer protection initiative designed to serve as a safety net for policyholders in the event of insurer distress or insolvency. The framework, issued under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, was announced through a circular to all insurance and reinsurance companies. It establishes clear guidelines for the collection, management, and administration of the fund, marking a significant step in strengthening confidence in Nigeria’s insurance sector.0051b1 According to NAICOM, the IPPF will be financed through mandatory annual contributions from insurers. All insurance and reinsurance companies operating in Nigeria are required to contribute 0.25 per cent of their annual net premium income to the fund. The contribution takes effect immediately, with the first assessment returns for the 2025 year due for submission to the Commission no later th...