The Senate has passed a Bill to rename the National Insurance Commission (NAICOM) as Insurance Regulatory Commision (IRC) in the wake to enable reforms in the insurance industry.
The Senate passed the Insurance Regulatory Commission (Establishment) Bill, 2026, after considering the report of its Committee on Banking, Insurance and Other Financial Institutions to strengthen the regulatory framework governing the insurance industry, enhance the independence of the commission, and expand its powers to supervise operators and protect policyholders.
The lawmakers, in a plenary on Tuesday, said the name change became necessary due to the existing designation no longer having adequate reflections the commission’s regulatory mandate and has created confusion within the insurance sector.
In addition to the rebranding, the House informed that the bill provides legal protection for the commission and its officials against adverse claims arising from the lawful execution of their statutory responsibilities.
Sponsored by Abiru alongside members of the Senate committee, the bill was read for the third time and approved on Tuesday during plenary, paving the way for NAICOM’s transition into the Insurance Regulatory Commission.
The proposed law further grants the regulator wider authority to collaborate with local and international supervisory bodies, issue industry guidelines and standards, and intervene in troubled insurance institutions to safeguard policyholders and maintain financial stability.
Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Adetokunbo Abiru, said the existing law establishing NAICOM had become outdated and no longer aligned with modern realities in the insurance industry.
“Established by the National Insurance Commission Decree of 1997, the National Insurance Commission was empowered to regulate insurance companies, brokers and loss adjusters, ensuring they operate within set guidelines,” Abiru said.
He noted that while the commission had played a major role in enforcing compliance and promoting industry development, gaps in the current law had made reforms necessary.
“However, despite its significant contributions, the enabling law has become obsolete, failing to align with current realities and global best practices, and unable to keep pace with the evolving nature of the insurance industry,” he stated.
According to the lawmaker, the bill is designed to establish the commission’s independence and strengthen its regulatory authority.
“The Bill seeks to establish the independence of the Commission and strengthen its regulatory powers, including the ability to make decisions without undue influence,” Abiru said.
He added that the legislation would empower the regulator to exchange information with domestic and international authorities, issue directives to stakeholders, and exercise stronger intervention measures in cases involving financially distressed insurers.
Abiru also said the bill introduces stricter requirements for membership of the commission’s governing board to ensure that only qualified professionals with expertise in insurance, finance, risk management, law and corporate governance are appointed.