The National Insurance Commission (NAICOM) has appointed global professional services firm Ernst & Young (EY) as consulting actuary to support the finalisation and implementation of Nigeria’s Risk-Based Capital (RBC) framework.
The commission disclosed the development following a working meeting held between NAICOM and EY in Abuja as part of ongoing efforts to strengthen regulatory oversight and financial resilience within the country’s insurance sector.
Speaking during the engagement, the Commissioner for Insurance, Olusegun Ayo Omosehin, said the commission has continued to make progress in transitioning the insurance industry towards a risk-based supervisory and capital regime.
According to him, the proposed framework is designed to enhance financial stability across the sector while providing stronger protection for policyholders.
Omosehin explained that implementation efforts have gained momentum following the enactment of relevant legislation and the ongoing Minimum Capital Requirement (MCR) recapitalisation exercise being undertaken by insurance operators.
He noted that the rollout of the Risk-Based Capital framework would be aligned with the completion of the recapitalisation programme currently underway in the industry.
The commissioner further revealed that the next phase of the initiative will involve Quantitative Impact Studies (QIS) and extensive industry-wide data collection exercises scheduled to commence in the coming weeks.
He said the exercises would help regulators recalibrate critical parameters, strengthen stakeholder participation and support the development of a comprehensive regulatory framework backed by detailed implementation guidelines.
Under the partnership, EY will provide technical expertise to assist NAICOM in accelerating the implementation process, building internal capacity and ensuring that the final framework reflects international best practices while addressing the unique realities of the Nigerian insurance market.
In its response, EY reaffirmed its commitment to supporting the commission and described the assignment as a priority engagement.
The firm stated that it would work closely with NAICOM and key industry stakeholders to develop a practical and effective Risk-Based Capital framework, along with the necessary tools and mechanisms required for successful implementation.
The initiative forms part of broader efforts by NAICOM to modernise insurance regulation, improve industry resilience and strengthen confidence in Nigeria’s insurance sector.
