NAICOM to Reintroduce RBS Capital Increase Model

Ebere Nwoji

Concerned by the perennial low operating capital on which insurance firms in the country sit tightly on the National Insurance Commission (NAICOM) has said that its next line of action in its journey towards full adoption and implementation of the Risk Based Supervision (RBS) model of regulation is the upward review of operators’ capital through the implementation of the Risk Based Capital (RBC).

The commission said it has already started working with a supporting agency, FSD Africa on this and very soon the framework would be unveiled.

The commissioner for insurance Mr Olorundare Sunday Thomas, who disclosed this at a recent bi -monthly meeting between insurance CEOs and NAICOM said the adoption and implementation of RBS in Nigeria had achieved appreciable level admitting that support got by the commission from operators has been encouraging and commendable. 

“Next level is now the Risk Based Capital, (RBC). The Commission is working with the FSD Africa on this and very soon, the framework will be unveiled, ”Thomas said.

On full digitisation of the insurance sector, the commissioner, noted  that it seemed some companies did not want to go digital but that such companies were in the minority. 

He said the commission would ensure that any company that was operating in the market must go digital otherwise, they should look at other sectors to play in. 

“We will not allow such companies to operate in the insurance sector any more because we must adopt technology to enable optimal growth.