The National Insurance Commission [NAICOM]

The National Insurance Commission (NAICOM), Nigeria’s principal insurance organization, performs a variety of functions, including regulation, monitoring, and the development of new systems. This page covers all you need to know about NAICOM in detail.

NAICOM – History and Overview

The National Insurance Commission (NAICOM) governs the practice and operations of insurance in Nigeria. The Act of 1997 assures the entire administration and supervision of the insurance industry in Nigeria.

It is only natural that every professional sector has an established body that governs its practice.

Essentially, the Financial Reporting Council of Nigeria establishes accounting standards in Nigeria, whereas the Chartered Institute of Personnel Management [CIPM] governs the practice of human resources.

This emphasizes the importance of established bodies overseeing the practice and supervision of specific professions.

Moving aside from this, the insurance industry also has a controlling body. NAICOM also protects insurance policyholders, including the general public, beneficiaries, and third parties to insurance contracts.

Functions, Obligations and Mandates of NAICOM

NAICOM has the following responsibilities – as specified in the enabling law [NAICOM Act 1997]:

• Basically, NAICOM establishes standards for the conduct of insurance business in Nigeria.
• It approves rates of an insurance premium which shall be paid in respect of all classes of the insurance business.
• Additionally, it ensures adequate protection of strategic government assets and other properties.
• It regulates transactions between insurers and reinsurers in Nigeria and those outside of Nigeria.
• In addition, it acts as an adviser to the Federal Government on all insurance-related matters.
• NAICOM approves standards, conditions, and warranties applicable to all classes of the insurance business.
• Furthermore, it protects insurance policyholders, beneficiaries, and third parties to insurance contracts.
• It publishes annual reports and statistics of the insurance industry.
• Also, NAICOM liaises with; and advises Federal Ministries and other Government Agencies on matters relating to insurance. This may be contained in any technical agreements to which Nigeria is a signatory.
• Also, It contributes to the educational programmes of the Chartered Insurance Institute of Nigeria and the West African Insurance Institute.
• Finally, NAICOM carries out other such activities connected or incidental to its other functions under the Act.

Operational Management at NAICOM

NAICOM operates under three divisions. Under each, we shall list the units embedded in them.

1. Commissioner for Insurance’s Division

• Legal and Board Secretariat
• Corporate Affairs
• Audit
• Procurement
• Information Technology
• Finally, Research, Statistics, and Corporate Strategy directorate

2. Technical Division

• Inspectorate Directorate
• Also, authorisation and Policy Directorate
• Supervision Directorate
• Enforcement and Compliance Unit
• Lastly, Complaint Bureau Unit

3. Finance and Administration Division

• Finance and Accounts
• Administration and Human Resources
• Finally, Servicom Unit

How can I contact NAICOM?

The NAICOM head office address is 1239, Ladoke Akintola Boulevard in Garki II; Abuja.

Bottomline

As the premier insurance body in Nigeria, other insurance organizations look to NAICOM. The body also handles disciplinary matters and insurance claims between the insured and the company.