Adedapo Adesanya
By Adedapo Adesanya
The National Insurance Commission (NAICOM) has announced that it will unveil the Risk-Based Capital (RBC) roadmap that will steer the insurance industry’s new capital regime by the end of April.
RBC requirement is a statutory minimum level of capital that is based on two factors, either by an insurance company’s size; or the inherent riskiness of its financial assets and operations.
The risk-based capital roadmap is intended to be a regulatory standard and not necessarily the full amount of capital that an insurer would need to hold to meet its objectives.
It helps to identify weakly capitalized companies, which facilitates regulatory actions to ensure policyholders will receive the benefits promised without relying on a guaranty association or taxpayer funds.
Speaking at a gathering with Managing Directors of insurance companies and management of the Nigerian Insurers Association (NIA) at the Insurers’ Committee meeting in Lagos, the Commissioner for Insurance, Mr Sunday Thomas, said the commission would by month-end, make public its decision on what should constitute the capital for operators in the sector.
He also commended operators that have embraced the NAICOM Portal, whilst imploring those yet to fully comply with the directive to do so.
Mr Thomas noted that there has been a tremendous progress in the upload of data by operators.
He stressed that by the end of the month, the agency would state its position on those not fully complying with the directive to send their documents via the portal.
He implored insurers to do more on settlement of claims, charging them to enhance and simplify their policy documents to enable the public to understand what they offer.
On her part, the Chairman, Sub-Committee on Publicity and Communications, Insurers Committee and Managing Director, NSIA Insurance Limited, Mrs Ebelechukwu Nwachukwu, noted that the body discussed and agreed on several initiatives that would help propel the Nigerian insurance sector forward.
She also submitted that the committee would continue to partner with the media in communicating its programmes to the public.
