Mr. Olorundare Sunday Thomas, Commissioner for Insurance, Nigeria and the Chairman of the West African Insurance Supervisors Association (WAISA)
As companies are expand beyond the shores of the jurisdictions of establishment or operation, the need for bi-regional or multi-regional co-operation and/or understanding
Pius Agboola, CISWAMZ Chairman in his statement said “The present Commissioner for Insurance, Nigeria and the Chairman of the West African Insurance Supervisors Association (WAISA), Mr. Olorundare Sunday Thomas, took over the mantle of the WAISA’s Leadership.
According to him, there is no doubt, the current Chairman of WAISA, Mr. Olorudare Sunday Thomas is a goal getter and great achiever. He is highly diligently, pro-active and with him, nothing is impossible. Therefore, on behalf of my Colleagues, I wish to appreciate you sir for this noble achievement.
The ongoing 2nd meeting of College of Insurance Supervisors of the West African Monetary Zone (CISWAMZ) at Abuja.
He said the desire to establish the College of Insurance Supervisors of the West African Monetary Zone dated back many years ago.
I appreciate other Commissioners of WAISA, whom without their support, the noble achievement of establishing the College would not have been achieved, he added.
Agboola noted that the coming together of the Member States of the College would afford us the opportunity to know one another, interact together and harmonise our thoughts of the present and future scope of operation and activities of the College.
CISWAMZ, Chairman added that the Insurance business evolved through the desire of entrepreneur to curtail the negative effects of the risk materializing. Hence, that is why Insurance is regarded as a risk transfer mechanism, a business that exist to ensure the survival of other businesses, he stressed.
Agboola in his wisdom said the entrepreneur who establishes an Insurance business or Company may choose to stay small, serving the local markets. Alternatively, he noted that the companies may not have the options to stay small as there are so many other factors that could make each company to expand and go beyond the shores of the jurisdictions and these factors can be categorized into; push or pull factors.
Push factors include;
-Declining opportunities in the home jurisdiction, and
-The need for consolidations, etc.
Pull factors include;
-The need to follow their clients abroad which is common in the oil and gas sector
-Expected benefits (i.e. large profit margin)
-Available unutilized potentials, etc.
“The special nature of Insurance and the fact that it is a business in the financial sector entails that it is highly regulated in the jurisdiction of operation. As the business expends beyond the jurisdiction of establishment or operation, the need for bi-regional or multi-regional co-operation and/or understanding grew, he said.
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College of Insurance Supervisors of the West African Monetary Zone, chairman pointed out that the need for this regional integration called College of Insurance Supervisors of the West African Monetary Zone.
The College is also established to Complement and implement the ideas, Projects and directives of the parent body – WAISA, he said.
“The scope for Inter-regional (international co-operation is very wide. And since this is not a paper presentation, I do not need to go into this.
More importantly, the chairman disclosed that the mandates of the college are one of the presentations scheduled for this program to be handled by a very competent officer of National Insurance Commission of Nigeria, Mr. Jankara Usman, Assistant Director (Corporate Strategy, and Special Duty)
The Chairman stressed that the starting point of any Group is a better understanding of their mandate which is the first presentation of this Meeting.
Therefore, he said, the various templates CISWAMZ planned to develop – template for presenting countries report, template for implementation of regulatory standard and presentation of Governors’ Convergence Council directives and template for Financial Stability Report are Permanent documents that require joint discussion, agreement and understanding.
“The 3rd day is the sharing of Nigeria’s experience on Risk Based Approach of Onsite Examination. I am very sure that the member states will have some take – away from the presentation, he affirmed.
Mr Agboola confessed saying the hosting of the Regional RBS by NAICOM and Toronto Centre, Canada in February, 2022 has enriched our understanding of the Risk Based Supervision and /or Risk Based Capital. Nigeria would be glad to share the RBS Framework for Insurers and Reinsurers in Nigeria with member states, he added.
“I wish to assure you that NAICOM, Nigeria is ready and available to assist any member state in developing their RBS frame work, RBS manual and for knowledge sharing.
The Ameh News recalled that Rasaaq Salami, the head, Corporate Communications and Market Development of the Commission in his statement outlined CISWAMZ under Pius Agboola, Director, Inspectorate Directorate of National Insurance Commission (NAICOM) as the Chairman, has a mandate to greatly enhance multilateral cooperation and promotion of international standards in fostering favourable investment environments and orderly markets in the West African sub region and beyond.
Salami further stated that CISWAMZ would assist the insurance industry respond to a wide range of social and economic forces; particularly, insurance-linked financial activities that are increasingly crossing national and sectorial boundaries.
According to him, the College of Insurance Supervisors of the WAMZ emphasizes on the important role of: fostering closer relationship by creating an enabling environment for the insurance sector to flourish most especially through collaboration and; harmonization of regulatory standards; Increasing operation of cross border network by branches and/or offshore subsidiaries in the insurance sector; adds a new dynamic dimension to the economies of countries; enhance solo supervision of insurance entities by the competent authorities; fostering a better understanding of supervisory practices and more efficient and effective supervision; facilitate group — wide supervision, entailing in particular, but not limited to an assessment of the Group’s:
Others include, Financial Situation, Compliance with the rules on solvency, Risk concentration and intra-group transactions, and System of governance, he added.
He disclosed that CISWAMZ queues behind the African Continental Free Trade Agreement (AfCFTA) to achieve a single market for goods and services, deepen the economic integration and prosperity on the continent as well as boosting Africa’s trading position in the global market by strengthening Africa’s common voice and policy space in global trade negotiations.
“The objective of the college is to strengthen cross border insurance supervision through information sharing and investigative assistance, which are in conformity with International Association of Insurance Supervision (IAIS) principles, minimizing fraudulent activities in the insurance sector in accordance with the Financial Action Task force (FATF) principles on Anti-Money laundering.