The National Insurance Commission (NAICOM)  was established in 1997 by the National Insurance Commission Act 1997 with responsibility for ensuring the effective administration, supervision, regulation and control of insurance business in Nigeria and protection of insurance policyholders, beneficiaries and third parties to insurance contracts.

 

MANDATE OF THE COMMISSION

  1. The mandate of the Commission as specified in the enabling law (NAICOM Act 1997) is to discharge the following functions:
  2. To establish standards for the conduct of insurance business in Nigeria;
  3. To approve rates of insurance premiums to be paid in respect of all classes of insurance business;
  4. Ensure adequate protection of strategic Government assets and other properties;
  5. Regulate transactions between insurers and reinsurers in Nigeria and those outside Nigeria;
  6. Act as adviser to the Federal Government on all insurance related matters;
  7. Approves standards, conditions and warranties applicable to all classes of insurance business;
  8. Protect insurance policyholders, beneficiaries and third parties to insurance contracts;
  9. Publish for sale and distribution to the public, annual reports and statistics of the insurance industry;
  10. Liaise with and advise Federal Ministries, Extra Ministerial Departments, statutory bodies and other Government Agencies on all matters relating to insurance contained in any technical agreements to which Nigeria is a signatory;
  11. Contribute to the educational programmes of the Chartered Insurance Institute of Nigeria and West African Insurance Institute; and
  12. Carry out other such activities connected or incidental to its other functions under the Act.

 

MISSION STATEMENT, VALUES, VISION AND GOALS

  1. Our Mission is to adopt best practices for effective Administration, Regulation and Supervision of the Nigerian Insurance Industry in order to protect policyholders and other beneficiaries of insurance contracts and facilitate adequate protection of strategic Government asset by providing relevant advice to the Federal Government on all insurance related matters.
  2. We subscribe to the values of proportionality, integrity, consistency and effectiveness in the pursuit of our vision to maintain a safe and sound Insurance Industry, competing globally and contributing optimally to the economic growth and development of Nigeria. In this regard, our efforts are guided by the following goals:
  3. safety and soundness of Insurance Institutions
  4. stability of insurance sector
  5. protection of policyholders and third parties covered by insurance contracts
  6. optimal development of the Nigerian insurance market
  7. public trust and confidence in the insurance system
  8. effectiveness in use of resources and
  9. compliance with relevant laws

 

The Governing Board

Section 2 (1) of the National Insurance Commission Act 1997, provides for the appointment of the Governing Board members to oversee the affairs of the Commission, the Board comprises of:

 

  • a part time Chairman;
  • the Commissioner for Insurance;
  • the two Deputy Commissioners for Insurance;
  • a representative of the Federal Ministry of Finance not below the rank of a Director;
  • a representative of the Central Bank of Nigeria(CBN) not below the rank of a Director;
  • a representative of Chartered Insurance Institute of Nigeria,(CIIN),
  • a representative of the Federal Ministry of Trade & Investment
  • and, three part time members to represent the interest of the public.

 

The Commissioner For Insurance        

The Commissioner for Insurance is statutorily the Chief Executive of the Commission and is responsible for the execution of the policies of the Commission as formulated by the Board and the day-to-day administration of the Commission. His tenure is for a period of 4 years in the first instance and may be reappointed for a further 4 years and no more.

 

Deputy Commissioner (Technical)

The Deputy Commissioner (T) is responsible to the Commissioner for the day-to-day administration and co-ordination of all technical operations of the Commission, and performs such other duties as the Commissioner or the Board may from time to time assign to him. His tenure is for a period of 5 years in the first instance and may be reappointed for a further 5 years and no more.

 

Deputy Commissioner (Finance and Administration)

The Deputy Commissioner (F&A) is responsible to the Commissioner for the day-to-day control of the financial affairs and administration of the Commission; and perform such other duties as the Commissioner or the Board may from time to time assign to him. His tenure is for a period of 5 years in the first instance and may be reappointed for a further 5 years and no more.

 

Operational Management

The Commission operates under three (3) different Divisions namely: Commissioner For Insurance’s Division, Technical Division and, the Finance & Administration Division. Each Division is headed by the Executive Management. Under the CFI’ Division are: Legal and Board Secretariat; Corporate Affairs; Audit; Procurement; Information Technology; Research, Statistics and Corporate Strategy directorate. Under the Technical Division headed by the DCT are: Inspectorate Directorate; Authorization & Policy Directorate, Supervision Directorate; Enforcement & Compliance Unit and, Complaint Bureau Unit. The Finance and Administration Division headed by the DCF&A comprises of Finance & Accounts; Administration & Human Resources and Servicom Unit. Directors who head the various functional directorates of the Commission are formally appointed following a rigorous selection process. The Commissioner delegates various powers and functions to directors and staff reporting to him, to ensure that the Commission’s business is carried out efficiently and effectively. Delegations are reviewed regularly and delegates are expected to act in accordance with policies and procedures approved by the Commission.

 

Executive Oversight

The Commissioner and the two Deputy Commissioners set priorities, appoints and evaluates the performance of the directors, and approves delegations, budgets and business plans for each directorate. Through day-to-day contact with executive management and staff, and through written reports, the Commissioner stays informed about operational performance, finance, human resources, information technology and all other matters.

 

Decision Making Process

A Top Management Committee (TMC) meeting is held every second Wednesday of each month. Membership of the TMC includes the Commissioner, his two Deputy Commissioners and all Directors who are heads of the six Directorates. Other members are the Legal adviser and Heads of Enforcement & Compliance, Audit and Corporate Affairs Units.