NIIRA Highlights Safer Cities and Enhanced Financial Stability

Coronation Insurance Plc has highlighted the transformative impact of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, describing the legislation as a significant step toward boosting consumer protection, enhancing safety standards, and expanding insurance coverage nationwide.

In its latest thought leadership release, Coronation Insurance noted that NIIRA, signed into law in July 2025, has been widely welcomed by industry players, many of whom contributed to its development. The law has also prompted a sector-wide recapitalisation exercise.

According to the company, the reform elevates insurance from a largely optional service to an essential element of economic and social life.

“The Act replaces outdated regulations with a modern framework that integrates insurance into daily activities, including construction, healthcare, aviation, lending, and public buildings. By reinforcing mandatory insurance classes and introducing stronger enforcement mechanisms, NIIRA 2025 makes insurance both a legal and operational necessity,” Coronation Insurance said.

Under the new law, key compulsory insurance classes have been clearly defined, including builders’ liability, occupiers’ liability for public buildings, group life, credit life, petroleum station insurance, healthcare professional indemnity, and aviation liabilities.

The Act also introduces stricter enforcement measures. Insurers are now required to remit 0.25 per cent of certain net premiums quarterly to the Fire Services Maintenance Fund, while regulators have the authority to seal buildings lacking the required insurance coverage. Significant fines and prison terms have been instituted for non-compliance.

Coronation Insurance emphasised that NIIRA 2025 directly addresses ongoing national challenges, such as building collapses and fire incidents. By mandating insurance for properties under construction and commercial buildings, the law encourages a stronger safety culture.

“This reform positions insurance as a core component of business management rather than an afterthought. Building owners and facility managers now carry defined responsibilities toward occupants and third parties, while insurers must expand digital capabilities to serve a growing market,” the company added.