The Commissioner for Insurance (CFI), National Insurance Commission (NAICOM), Mr Sunday Thomas says the Risk Based Supervision policy in Insurance industry has been coming realistic, as all what needed to have be done and all what needed to acquired has be substantially done.
CFI further said that the Commission is set to commence implementation of the Risk Based Supervision (RBS) policy, I think we have long enough adding that the first set of Risk Based Supervision in the Nigeria market will take off in the next one or two months .
Thomas disclosed this while speaking at the NAICOM Annual seminar retreat for Insurance and Pension Journalists hosted by the Commission in Lagos.
He further disclosed that the relevant persons have been trained, the necessary skills have been acquired and the instruments that will enable the implementation have been development, what is left is to do the finishing touches for the takeoff.
NAICOM had reportedly been on the policy advancing with its plan to transition from a compliance-based model of supervision to that of risk-based supervision (RBS) in 2017, he noted.
“The RBS is a system in which the supervising authority allocates time and resources to firms based on the level of risk inherent to their balance sheet.
The supervisor assesses systemic risk that affects the industry as a whole, and then analyses the level of risk specific to each firm. It takes a holistic approach, and studies the business units within the enterprise, each of which may carry varying levels of risk
Mr Thomas also revealed that Today, the contributing pension scheme is in the range of over N12trillion is expected that a lot of these will find their way into insurance sector. So whatever we have there, there are just scratch. So we need the supply side to be enhanced. So that we will able to, we do not what feel any heat up in providing the platform.
“As I speak right now we have some committee working on the guidelines that make it mandatory or will enforce the law on Nigeria Content. On completion, all the linkages that we have there that will hinder our operations effectively will be blocked.
In the paper presented at the event by Mr Salami Rasaaq, Head, Corporate Communications & Marketing Development of the Commission says there will be Build Massive Media Campaign around the insurance activities soon.
He further disclosed the details of the stakeholders sensitization on benefits of insurance that is on the under way which target of Government at all levels; FG, SGs & LGs while that of MSMEs will focus on partnership with SMEDAN also the Millennials and Gen Z which make up 60% of our population will be our focus too. “Promote Micro-Insurance, Takaful, enforcement & Compulsory insurances across the States in Nigeria.”
Mr Rasaaq’s paper gave lineup details of the program as follows:
A: Stakeholders’ Grooming/Partnership
- Launch a joint implementation task force (Police, FS, FRSC, Min. of Justice– Mobile Courts, MDAs at all levels, etc.)
- Insurance Stakeholders Forum / Town Hall Meetings
- Launch the Insurance Industry Thought Leadership Series (Testimonials and Endorsements)
B: The Social/Digital NAICOM
- Launch Massive Social Media Targeted campaigns
- Social Media Assets generation (Designs, Infographics, Motion Graphics)
- Target 120 million Nigerians to convert 20% (24 million)
- Create Digital Insurance products
- An upgraded and integrated Website
- The NAICOM Mobile App
- Focus on the young Digital Generation
The paper disclosed that the Commission:
- Working with SME cohorts across geo-political zones
- Build trust among the insured leading to more referrals
- Build confidence in the sector by reducing incidences of fake insurance and implementing penalty for non-payment of claims
- Working with digital companies with access to data and information for wider reach and impact, etc.