Coronation Insurance Plc has outlined the far-reaching benefits of the Nigerian Insurance Industry Reform Act 2025, describing the new law as a major step toward strengthening consumer protection, improving safety standards, and deepening insurance penetration across the country.

This was disclosed in its latest thought leadership piece on NIIRA, which was signed into law in July 2025. NIIRA 2025 has enjoyed broad acceptance in the insurance industry, with players indicating that their views were factored into the legislation. The new law has also prompted a recapitalisation exercise in the sector.

According to Coronation Insurance, the reform shifts insurance from being largely optional to becoming an essential part of everyday economic and social life.

“The new law replaces outdated regulations with a modern framework that embeds insurance into everyday activities, from construction and healthcare to aviation, lending, and public buildings. By reinforcing compulsory insurance classes and introducing stronger enforcement mechanisms, NIIRA 2025 shifts insurance from a discretionary purchase to a legal and operational necessity,” said the underwriter.

Under the new Act, compulsory insurance classes have been re-emphasised and clarified. These include builders’ liability, occupiers’ liability for public buildings, group life, credit life, petroleum station insurance, healthcare professional indemnity, and aviation liabilities.

Coronation Insurance noted that NIIRA 2025 also introduced stronger enforcement mechanisms. 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 that lack required insurance cover. The Act further provides for significant fines and jail terms for non-compliance.

The company highlighted that the reform responds directly to persistent national challenges, including building collapses and fire incidents. By mandating insurance for buildings under construction and commercial properties, the law is designed to promote a stronger safety culture.

“What this really means is that insurance becomes part of mainstream business management, not an afterthought. Building owners and facility managers have obligations to occupants and third parties, and insurers will need to scale up their digital capacity to serve a larger market,” the firm added.