The Senate has approved a bill seeking to change the name of the National Insurance Commission (NAICOM) to the Insurance Regulatory Commission (IRC) as part of efforts to update the legal framework guiding the country’s insurance sector.
The bill, known as the Insurance Regulatory Commission (Establishment) Act, 2026, was passed on Tuesday after the Senate considered the report of the Committee on Banking, Insurance and Other Financial Institutions.
The committee chairman, Senator Adetokunbo Abiru, who represents Lagos East, presented the report on the National Insurance Regulatory Commission (Repeal and Enactment) Bill, 2026, which was sponsored by him and other members of the committee.
The Senate said the proposed name change was needed because the existing name, National Insurance Commission, no longer properly reflects the role and structure of the Nigerian insurance industry.
NAICOM was created through the National Insurance Commission Decree of 1997 to regulate insurance companies, brokers, and loss adjusters while ensuring compliance with industry rules.
Over the years, the commission has been responsible for monitoring insurance firms, protecting policyholders, enforcing regulations, and supporting the growth of the insurance market.
However, lawmakers noted that the current law establishing the commission needs to be reviewed to meet present-day demands and international standards in the insurance sector.
The new bill aims to give the commission greater independence and stronger regulatory powers. It also provides room for the agency to work with local and international regulators, issue guidelines, and take necessary actions when insurance companies face financial challenges.
The legislation also includes measures to improve the composition of the commission’s governing board by ensuring members have experience in areas such as insurance, finance, law, risk management, and corporate governance.
According to the Senate, the changes will help strengthen supervision of the insurance industry, improve protection for policyholders, and support a more stable insurance system in Nigeria.
With the passage of the bill, NAICOM will transition into the Insurance Regulatory Commission after the legislation receives the required approval processes.
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