The Nigerian stock market stayed hot for the 11th straight week, with the All-Share Index jumping 4,491.86 points to close at 145,754.91, a 3.18% gain week-on-week.

Market activity surged, with 7.7 Action shares traded up from 4.8 Action the week before pushing market capitalization to N92.2 trillion, just a step away from the N100 trillion milestone.

But the real fireworks came from the insurance sector.

The NGX Insurance Index was the week’s star performer, soaring 41% as investor sentiment turned sharply bullish on the back of the newly enacted Nigeria Insurance Industry Reform Act (NIIRA) 2024.

All ten of the market’s top gainers came from the sector, with Mutual Benefits Assurance leading the charge, up 60.44%, followed by AIICO Insurance and Royal Exchange, both up nearly 60%.

Overall, the All-Share Index rose 3.18% to close at 145,754.91 points. Market capitalization climbed to N92.2 trillion, now within striking distance of the N100 trillion mark. Trading activity surged to 7.7 billion shares, compared with 4.8 billion the prior week.

The NIIRA 2024, which took effect this month, introduces sweeping reforms designed to strengthen the sector and drive penetration in Africa’s most populous nation.

The Act ushers in sweeping changes that tighten capital requirements, embed risk-based supervision, expand compulsory insurance lines, and push the sector deeper into the digital era.

One of the most consequential provisions is the sharp increase in minimum paid-up capital: N25 Action for non-life insurers, N15 Action for life insurers, and N45 Action for reinsurance companies.

Risk-based supervision will become the operational backbone of the sector. Companies must maintain a 100% capital adequacy ratio, with NAICOM empowered to impose additional capital requirements for specific exposures such as insurance, market, credit, and operational risks.

Compulsory insurance is also set for a major upgrade, with broader coverage, explicit penalties, and coordinated enforcement.

The legislation also embraces digital delivery and accelerates product approvals.

Foreign participation is permitted under stricter conditions.

Dividend payouts will be strictly tied to solvency and full provisioning.

The Act also formally recognises microinsurance and financial inclusion.

Taken together, the Nigerian Insurance Industry Reform Act, 2024, represents the most comprehensive overhaul of the sector in decades one that will test the adaptability of insurers, reward operational discipline, and open new growth frontiers for the industry.

Analysts say the Act could spark fresh capital inflows into the industry, lift consumer confidence, and position Nigeria as a regional insurance hub.

For investors, this means insurers could benefit from new premium streams while also participating in property-backed investment opportunities.