NAICOM Sets Guidelines for Insurance Policyholders Fund

The National Insurance Commission (NAICOM) has released guidelines concerning the Insurance Policyholders Protection Fund (IPPF), established under the Nigerian Insurance Industry Reform Act (NIIRA) 2025. These guidelines introduce a mandatory contribution system for insurance and reinsurance companies operating in Nigeria, requiring them to contribute 0.25% of their annual net premium income to the fund.

The deadline for these contributions is set for June 30 of each year. To strengthen reserves, NAICOM will inject 0.25% of the balance into the Security Insurance Development Fund (SIDF).

The commission has emphasized a zero-tolerance approach towards non-compliance, stating that failure to remit the assessed contributions within the stipulated timeframe will result in suspension or cancellation of the company's operating license. The guidelines aim to ensure that policyholders and beneficiaries are protected, particularly in cases of insolvency or distress within the insurance sector.