Regulatory Compliance and Private Law Obligations of Insurance Companies in South West Nigeria

Insurance companies operating in South West Nigeria face dual obligations arising from National Insurance Commission regulatory requirements and private law duties owed to policyholders, creating compliance management challenges that require professional legal expertise. This study examines the regulatory compliance obligations of insurance companies and their corresponding private law duties to policyholders in South West Nigeria, focusing on Lagos and Ogun State. Using a practitioner-oriented research design, the study analyses National Insurance Commission enforcement actions, 20 insurance contract disputes decided between 2020 and 2024, and conducts interviews with 25 insurance compliance officers, 15 insurance lawyers, and 10 National Insurance Commission regulatory staff. Findings reveal systematic compliance failures in claims processing, premium management, risk disclosure, and solvency maintenance, and identify how these regulatory breaches translate into private law liability towards policyholders. The study further examines how the Insurance Act 2003 and the National Insurance Commission's Guidelines on Minimum Standards interact with private contractual obligations. Comparative analysis with insurance regulation in Kenya and South Africa informs a comprehensive reform agenda. Recommendations include enhanced National Insurance Commission supervisory capacity, mandatory independent actuarial reviews of insurance companies, simplified policyholder claims processes, and stronger legal remedies for policyholders in breach-of-contract claims against insurers. Keywords: insurance regulation, compliance, private law obligations, National Insurance Commission, South West Nigeria