The statutory Regulators are the Chartered Insurance Institute of Nigeria (CIIN) and the National Insurance Commission (NAICOM).
The Chartered Insurance Institute of Nigeria (CIIN)
The CIIN is the professional body for all individual insurance practitioners in the country. Individual persons (and not corporate bodies) are members of the Institute, and it does not matter in which arm of the industry that member is engaged.
The main objectives of the Institute are contained in the Chartered Institute of Nigeria Act No. 22 of 1993, and include the following:
- Insurance education and professional training including conduct of examination;
- Determining the standard of knowledge and skill as well as reviewing standards of insurance practice in general;
- The maintenance of a register of practitioners and members;
- Promoting professional insurance and reinsurance practice in Nigeria.
The Institute has four categories of membership:
Majority of the Fellows are practitioners who qualified by examination, and hold the Fellowship of the Chartered Insurance Institute of London (FCII). They were on application awarded Fellowship of the CIIN (FIIN). Others are honorary fellows, awarded Fellowship by the Institute in recognition of their professional contribution to the industry and the Institute. The Institute does not award Fellowship by its own examination.
The Associates are those who completed the Institute’s qualifying examinations, and are awarded the Associateship Diploma (AIIN). AIIN is also awarded to Associates of the CII London on application.
(3) Student Members
Those who enroll as such and are studying for the qualifying examination to qualify as Associates.
(4) Ordinary Members
Other persons who are interested in the activities of the Institute, or persons who have other professional qualifications and are not interested in the qualification, but are employed in the insurance industry.
The Institute also conducts the Insurance Proficiency Certificate (IPC) examinations for those who do not possess the qualification to enroll for Associateship Examinations. IPC is the minimum qualification which an insurance agent is required to posses. Possession of the Certificate also qualifies a person to enroll for the qualifying examinations for the Associateship of the Institute.
National Insurance Commission (NAICOM)
The Commission was established by National Insurance Commission Act No. 1 1997 to ensure the effective administration, supervision, regulation and control of insurance business in Nigeria. The Commission thus derives its powers from both the National Insurance Commission Act, and the Insurance Act 2003. The functions of the Commission include:
- Establish standards for the conduct of insurance business in Nigeria;
- Approve rates of insurance premiums to be paid in respect of all classes of insurance business;
- Approve rates of commissions to be paid in respect of all classes of insurance business;
- Ensure adequate protection of strategic Government assets and other properties;
- Regulate transactions between insurers and reinsurers in Nigeria and outside Nigeria;
- Act as adviser to the Federal Government on all insurance related matters;
- Approve standards, conditions and warranties applicable to all classes of insurance business;
- Protect insurance policy-holders and beneficiaries and third parties to insurance contracts;
- Contribute to the educational programmes of the Chartered Insurance Institute of Nigeria and the West African Insurance Institute.
The Commission registers and grants licences to insurance companies, insurance agents, insurance brokers, and loss adjusters. The inspectorate department of the Commission carries out routine and special investigations of operators to ensure that they operate according to the provisions of Insurance Act 2003 the relevant Regulation and Policy Guidelines. In serious cases of breach of the provisions of the law and insolvency, the Commission has powers to suspend an operator from carrying on business, withdraw licence, take over the management, or liquidate the company or firm.