The need for risk-based supervision rule in Nigeria’s insurance industry

From the second quarter of 2016, the National Insurance Commission (NAICOM) will release the timetable, guidelines and minimum capital requirements (MCR) for insurance firms in Nigeria as it transits from compliance based supervision to risk-based supervision of the industry.

The Commissioner for Insurance and CEO, NAICOM, Alhaji Mohammed Kari disclosed at a workshop for insurance reporters and business editors held in Abeokuta recently.

The insurance regulator said the release of the timetable, guidelines and the MCR would climax a painstaking efforts by the commission towards seamlessly transition to RBS that has been in the works, a couple of years now. Risk Based Supervisor (RBS) is a structured supervisory approach aimed at identifying the most critical risks that face each company and through a focused review by the supervisor; access the company’s management of those risks and the company’s financial vulnerability to potential adverse experience.

Source: Daily Trust