Some executives of National Insurance Commission (NAICOM) are already in the eight selected insurance companies conducting a pilot Risk Based Supervision (RBS) examination.

This is as stakeholders have implored NAICOM to make public its findings in the companies so that those not examined could learn from it, whilst awaiting the full implementation.

The Deputy Commissioner, Technical, NAICOM, Sabiu Abubakar, had at a forum recently in Lagos, disclosed that the Commission would execute the exercise, having had the first phase in 2021 with seven companies, of which the outcomes were sent to the examined firms.

“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.