Economy
THE Chairman of the National Insurance Commission (NAICOM), Mr Olusegun Omosehin, says the commission is transitioning the insurance sector towards a risk-based supervisory regime and capital structure.
This is contained in a statement on Thursday in Abuja, by Omosehin.
He explained that as part of the commission’s ongoing Risk-Based Capital Implementation project, the global professional services firm, Ernst & Young (EY) was recently appointed.
He said that the EY would act as Consulting Actuary for the finalisation and implementation of Nigeria’s Risk-Based Capital (RBC) framework.
According to him, this strategic shift is aimed at strengthening financial stability and enhancing policyholder protection across the industry.
He said that following the recent enactment of enabling legislation and the ongoing Minimum Capital Requirement (MCR) recapitalisation exercise, NAICOM had accelerated efforts to operationalise an RBC framework tailored to the Nigerian insurance market.
He also said that that the deployment of the RBC framework would be aligned with the conclusion of the current MCR exercise, adding that key steps include Quantitative Impact Studies (QIS) and industry-wide data collection in the coming weeks.
According to him, these will support recalibration of key parametres, deepen stakeholder engagement, and inform the issuance of the final framework alongside comprehensive regulatory guidelines.
“Under the engagement, EY will support NAICOM to accelerate implementation, strengthen internal technical capacity.
“The EY will also ensure the resulting regulatory framework is robust, transparent, and fit for purpose within the Nigerian market context.”
Meanwhile the EY has reaffirmed its commitment to delivering the assignment as a priority engagement.
It also assured that it would work closely with NAICOM and relevant stakeholders to develop a practical, implementable RBC framework and the necessary supporting tools for effective execution.(NAN)
F.O
Tags: NAICOM Transitions insurance sector to risk based regime