Insurance protection fund to ease consumer burden during institutional failures — FCCPC Boss

By Damilare Adeleye

The Executive Vice Chairman and Chief Executive Officer of the Federal Competition and Consumer Protection Commission (FCCPC),Tunji Bello has expressed strong support for the newly launched Insurance Policyholders’ Protection Fund (IPPF).

He described the initiative as a vital step toward restoring public trust in Nigeria’s insurance sector.

Speaking on Friday at the IPPF inauguration ceremony organized by the National Insurance Commission (NAICOM) in Abuja, Bello noted that the fund addresses a long-standing grievance for many Nigerian policyholders, an issue the FCCPC frequently encounters.

“At the FCCPC, consumer protection is at the heart of our mandate. We regularly interact with consumers who have suffered losses because existing systems failed to provide adequate protection or effective remedies during disputes,” Bello stated.

He highlighted the plight of policyholders who consistently paid their premiums only to be left stranded when their insurers became insolvent.

The IPPF is specifically designed to mitigate such scenarios by establishing a compensation framework for eligible policyholders affected by the collapse of an insurance firm.

This mechanism shifts the financial burden of institutional failure away from the individual consumer and onto a structured safety net.

“The IPPF responds directly to this challenge. By creating a compensation framework, it reduces the disproportionate burden consumers often face during institutional failures. More importantly, it reinforces accountability and strengthens public confidence in the insurance market,” Bello remarked.

Bello further emphasized the FCCPC’s commitment to collaborating with NAICOM and the IPPF Committee on consumer welfare initiatives.

He pointed out that consumer protection challenges are increasingly cross-sectoral, noting that the same individuals purchasing insurance also interact with financial services, telecommunications, and digital platforms.

This interconnectedness, he argued, requires seamless coordination and information-sharing between regulatory bodies.

Addressing insurance industry stakeholders, Bello framed the fund as a strategic advantage rather than a regulatory hurdle.

He urged the sector to view the IPPF as an opportunity to enhance its credibility, noting that stronger institutional safeguards encourage wider participation and contribute to a more resilient market environment.