Ebere Nwoji
The Commissioner for Insurance, Mr Ayo Olusegun Omosehin, at the weekend inaugurated the Insurance Policyholders’ Protection Fund (IPPF) committee, with a mandate on the committee members to ensure that the Fund is sustainably financed, professionally managed, and capable of delivering timely and fair protection to policyholders.
Omosehin, also charged the committee members on financial discipline demanding that they should ensure timely contributions, prudent stewardship of assets, and sound controls that protect the fund’s long-term sustainability.
The commissioner who spoke during his opening address at the committee’s inauguration in Abuja said the inauguration marked a major step in strengthening confidence in Nigeria’s insurance market and deepening consumer protection.
“With the establishment of the Insurance Policyholders’ Protection Fund Committee pursuant to Section 212 of the Nigerian Insurance Industry Reform Act, NIIRA 2025, we are moving from policy intent to institutional protection that gives policyholders greater assurance and gives the market greater credibility,” he said.
He described the IPPF as a statutory safety net for policyholders when an insurer becomes insolvent or is unable to meet its obligations.
“It protects households and businesses from avoidable loss, reinforces trust in insurance as a reliable promise, and helps preserve stability across the market.NIIRA 2025 reflects the Federal Government’s commitment to a stronger, more resilient, and consumer-centric insurance industry” he assured.
He highlighted the objectives of the Committee as ensuring protection of policyholders and beneficiaries covered under an insurance policy in Nigeria. Ensuring timely and accurate collection of contributions to the fund. Establish sound management and investment practices for the fund. Providing procedures for disbursement and recovery of loans from the fund. Promote transparency, accountability, and governance in the administration of the fund, emphasising that the fund should be used for the purpose of resolving distress and insolvencies of licenced insurers and reinsurers or as a result of cancellation of licence.
Omosehin further charged the committee to establish transparent processes that support prompt claims decisions, consistent administration, and public confidence in the Fund.