The National Insurance Commission (NAICOM) would this month – August, commenced a pilot Risk Based Supervision (RBS) examination in eight insurance companies, Inspenonline can report.
The Deputy Commissioner, Technical, NAICOM, Sabiu Abubakar, who disclosed this at a forum recently in Lagos, noted that the Commission, did a pilot RBS examination in 2021 with seven companies and that the outcomes have been sent to the companies involved.
“Eight companies have been scheduled for the 2nd half year of 2022 RBS commencing in August,” he posited.
He maintained that NAICOM has started training its Staff on Risk-Based Capital
(RBC) in collaboration with FSD, Africa, stressing that 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.
Abubakar submitted that hopefully, full implementation of RBC would start in 2023 or 2024.
Managing Director, Excel Professional Service Limited, Dr. Oladimeji Alo, whilst speaking on benefits of Risk-Based Capital, implored insurance practitioners to engage on self recapitalisation, without necessarily waiting for a regulatory induced exercise.