Assessing Regulatory Efficacy: Evidence from the Nigerian Insurance Industry Reform Act 2025

In response to worries about under capitalization in the insurance industry and its clear impact on public confidence and financial intermediation, the Nigerian Insurance Industry Reform Act (NIIRA) 2025 was passed into law to become the main piece of legislation governing the insurance sector and its operators in Nigeria. Although, government regulations enable businesses to ensure compliance with market standards, protect employees and customers, as well as, the general public. Unfortunately, regulatory efficacy in the Nigeria insurance sector faces serious hurdles like regulatory enforcement gaps, capacity constraints and weak legislative frameworks. This study, examined the regulatory efficacy of NIIRA 2025 and therefore offers insights into what NIIRA 2025 means for the future of Nigeria’s insurance industry. It adopted purposive and virtual snowball sampling techniques and uses descriptive method to analyse data gathered through online survey from 708 consumers of insurance products in Nigeria. The findings inferred that the enforcement of NIIRA 2025 exerts positive effect on both claims processing efficiency and consumer trust development in the insurance industry of Nigeria. The study therefore recommended, that the National Insurance Commission should keep bolstering the enforcement of NIIRA 2025 by guaranteeing regular monitoring, compliance audits and suitable penalties for non-compliance.