BY NKECHI NAECHE-ESEZOBOR—The National Insurance Commission (NAICOM) has appointed global professional services firm Ernst & Young (EY) as the consulting actuary for the finalization and implementation of Nigeria’s Risk-Based Capital (RBC) framework.
The appointment was formalized during a working meeting between NAICOM and EY in Abuja, marking a key milestone in the commission’s ongoing RBC implementation project.
During the meeting, the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, stated that the commission has been progressively transitioning the Nigerian insurance sector toward a risk-based supervisory regime and capital structure. He emphasized that this strategic shift aims to strengthen financial stability and enhance policyholder protection across the industry.
He noted that following the recent enactment of enabling legislation and the ongoing Minimum Capital Requirement (MCR) recapitalization exercise, NAICOM has accelerated efforts to operationalize an RBC framework tailored to the Nigerian insurance market.
The commissioner explained that the deployment of the RBC framework will align with the conclusion of the current MCR exercise. Key next steps include conducting Quantitative Impact Studies (QIS) and initiating industry-wide data collection in the coming weeks. These measures will support the recalibration of key parameters, deepen stakeholder engagement, and inform the issuance of the final framework alongside comprehensive regulatory guidelines.
Under this engagement, EY will support NAICOM in accelerating implementation, strengthening internal technical capacity, and ensuring the resulting regulatory framework is robust, transparent, and fit for purpose within the Nigerian market context.
In response, EY reaffirmed its commitment to prioritizing the assignment. The firm will work closely with NAICOM and relevant stakeholders to develop a practical, implementable RBC framework and the necessary supporting tools for effective execution.
