Full Implementation of Risk-Based Capital Will Start in 2023 or 2024 – NAICOM

The National Insurance Commission (NAICOM) said the Commission is getting ready for the full implementation of Risk-based Capital (RBC) in 2023 or 2024.

This was disclosed by the Deputy Commissioner (Technical), National Insurance Commission (NAICOM), Sabiu Abubakar, who represented the Commissioner for Insurance/CEO, NAICOM, Olorundare Sunday Thomas, at a recent event organized by the Chartered Insurance Institute of Nigeria (CIIN) in Lagos.

He informed the audience that the Commission did a Pilot Risk Based Supervision (RBS)/Risk-Based Capital Examination in 2021 with seven Companies, adding that the “outcomes have been sent to the Companies involved.”

Abubakar said the Commission has pencilled down another Eight companies for commencement of the RBS examination this month of August.

He said the Commission has started training of its Staff on Risk-Based Capital (RBC) in collaboration with FSD, Africa.

While hoping for the full implementation of Risk-Based Capital, he said “The Insurance operators are expected to carry out capacity building of their Staff on RBC as the involvement of the operators on the RBC framework is very demanding in terms of human technical capacity and other resources.  Hopefully, full implementation of this will start in 2023 or 2024.”

According to him, “Insurance regulation and supervision are always the bedrock of national economic development. I believe the above NAICOM Reforms and regulatory initiatives will positively impact the Insurance Industry if achieved the Industry will witness tremendous development and growth.

He urged operators and stakeholders to remain complaints and support the Commission’s efforts.