DATA PROTECTION ACT 2023 AND PERFORMANCE OF INSURANCE BROKING FIRMS IN LAGOS STATE, NIGERIA
Keywords:
Data Protection Act, Insurance Industry, Solvency MarginAbstract
The enforcement of the Nigeria Data Protection Act (DPA) 2023 represents a major regulatory shift, with significant implications for the operations and compliance structures of insurance brokerage firms. Understanding how this Act affects organisational outcomes is crucial to enhancing data governance in Nigeria’s financial services sector. This study aimed to examine the challenges posed by the implementation of the Data Protection Act 2023 and its impact on the organisational performance and growth of selected registered insurance brokers in Nigeria. A quantitative research design was adopted using a structured questionnaire administered to 300 purposively selected fifteen insurance broking firms across Lagos State. Of these, 210 responses were valid and were analysed using SPSS version 23. Hypotheses were tested using simple regression analysis and Chi-square Test for Goodness of Fit. The results revealed a strong positive relationship between the implementation of the DPA 2023 and the organisational performance of insurance brokers. It also showed that a significant number of brokers face implementation challenges, such as limited staff training and inadequate compliance infrastructure. Furthermore, the study found a positive and significant relationship between the DPA 2023 and the growth of insurance brokers. The study concludes that while the DPA 2023 positively influences both performance and growth of insurance brokers, implementation challenges remain a critical barrier that must be addressed to fully realise its benefits. It is recommended that regulatory bodies and broker associations provide more training, compliance support, and digital infrastructure to insurance brokers to ease DPA implementation. This will enhance performance outcomes and foster sustainable growth within Nigeria’s insurance brokerage sector.References
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