By Bassey Udo
The National Insurance Commission (NAICOM) on Thursday announced the appointment of the global professional services firm, Ernst & Young (EY) as Consulting Actuary to finalize the implementation of the Nigeria’s Risk-based Capital (RBC) framework.
NAICOM said the appointment was formalized at a working meeting held in Abuja between NAICOM and EY as part of its ongoing Risk-based Capital Implementation project.
The Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, said at the meeting that the Commission has made significant progressive in transitioning the Nigerian insurance sector toward a risk-based supervisory regime and capital structure.
“This strategic shift is aimed at strengthening financial stability and enhancing policyholder protection across the industry,” Omosehin said.
He noted that following the recent enactment of enabling legislation and the ongoing Minimum Capital Requirement (MCR) recapitalization exercise, NAICOM has accelerated efforts to operationalize an RBC framework tailored to suit the Nigerian insurance market.
The Commissioner explained that the deployment of the RBC framework would be aligned with the conclusion of the current MCR exercise.
Key next steps under the new framework include Quantitative Impact Studies (QIS) and industry-wide data collection in the coming weeks to support the recalibration of key parameters, deepen stakeholder engagement, and inform the issuance of the final framework alongside comprehensive regulatory guidelines.
Under the engagement, EY is expected to support NAICOM to accelerate the implementation of the new framework, strengthen internal technical capacity, and ensure that the resulting regulatory framework was robust, transparent, and fit for purpose within the Nigerian market context.
Responding, EY reaffirmed its commitment to delivering the assignment as a priority engagement, adding 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.
