Yemisi Izuora
The National Insurance Commission (NAICOM) has named global professional services firm Ernst & Young (EY) as Consulting Actuary for the finalization and implementation of Nigeria’s Risk-Based Capital (RBC) framework.
The appointment was formalized at a working meeting held today between NAICOM and EY in Abuja, as part of the Commission’s ongoing Risk-Based Capital Implementation project.
Speaking at the meeting, the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, said the Commission has been progressively transitioning the Nigerian insurance sector toward a risk-based supervisory regime and capital structure. “This strategic shift is aimed at strengthening financial stability and enhancing policyholder protection across the industry,” he stated.
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 deployment of the RBC framework will be aligned with the conclusion of the current MCR exercise. Key next steps include Quantitative Impact Studies (QIS) and industry-wide data collection in the coming weeks. These will support recalibration of key parameters, deepen stakeholder engagement, and inform the issuance of the final framework alongside comprehensive regulatory guidelines.
Under the engagement, EY will support NAICOM to accelerate implementation, strengthen internal technical capacity, and ensure the resulting regulatory framework is robust, transparent, and fit for purpose within the Nigerian market context.
In response, EY reaffirmed its commitment to delivering the assignment as a priority engagement. 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.