BREAKING: NAICOM rolls out Mandatory Policyholders’ Protection Fund, tightens insurance compliance

The National Insurance Commission (NAICOM) has issued sweeping new guidelines mandating all insurers and reinsurers to contribute to the Insurance Policyholders’ Protection Fund (IPPF), marking a major regulatory shift aimed at safeguarding policyholders against insurer insolvency.

The 14-page framework, released via circular ref. NAICOM/DIR/CIR/79/2026, establishes a statutory safety net under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, with immediate effect.

The fund is designed to protect policyholders and beneficiaries in cases of financial distress within the insurance sector.

Under the new rules, insurers are required to contribute 0.25% of their net premium income annually, alongside additional funding support from the Security and Insurance Development Fund (SIDF), reinforcing NAICOM’s push to strengthen financial resilience and restore confidence in the industry.

Details shortly…. 

source: nairametrics