NAICOM unveils Policyholders Protection Fund, mandates contributions

The National Insurance Commission (NAICOM) has launched the Insurance Policyholders’ Protection Fund (IPPF), mandating all insurance and reinsurance companies to contribute to the fund to safeguard policyholders and strengthen industry stability. Insurers are required to remit 0.25% of their net premium income annually, with potential sanctions for non-compliance. The fund will be used to resolve distress and insolvencies of licensed insurers and for the payment of claims due to insolvency.