The Nigerian stock market maintained its bullish streak for the 11th consecutive week, with the All-Share Index (ASI) climbing 4,491.86 points to close at 145,754.91, marking a 3.18% weekly gain. Market capitalization also rose to N92.2 trillion, inching closer to the N100 trillion milestone, as trading activity surged to 7.7 billion shares from 4.8 billion the previous week.
Driving this market optimism was the insurance sector, which emerged as the top performer. The NGX Insurance Index skyrocketed 41% for the week, propelled by the passage of the Nigeria Insurance Industry Reform Act (NIIRA) 2024. All ten of the market’s leading gainers hailed from insurance, with Mutual Benefits Assurance up 60.44%, and AIICO Insurance and Royal Exchange close behind, each gaining nearly 60%.
Investors are flocking to insurance stocks due to the NIIRA 2024, which introduces far-reaching reforms aimed at strengthening Nigeria’s insurance industry. Key provisions include sharply increased minimum paid-up capital for insurers, compulsory risk-based supervision, and expanded mandatory insurance coverage across sectors such as motor, construction, healthcare, and petroleum. Analysts note that these changes are designed to boost transparency, operational discipline, and sector penetration.
The Act also emphasizes digital adoption and innovation. Policies can now be issued electronically, new products approved automatically if regulators fail to respond within 30 days, and InsurTech solutions are encouraged. Additionally, foreign participation is permitted under stricter guidelines, while composite insurers are required to separate life and non-life operations within five years. Dividend payouts are now strictly tied to solvency, protecting policyholders and ensuring sustainable growth.
Market experts predict that NIIRA 2024 could trigger fresh capital inflows, elevate consumer confidence, and position Nigeria as a regional insurance hub. By linking compulsory coverage with real estate, infrastructure, and digital innovation, the law opens new premium streams and investment opportunities, creating a fertile environment for insurers and investors alike.
Source: Nairametrics