Determined to reposition the insurance industry to attain the global best practices status, the National Insurance Commission (NAICOM), said it will in July this year, expose the draft of its much talked about Risk Based Supervision (RBS) model to insurance industry operators.
The Commission, said the model will ride on the Solvency 2 supervisory principle in regulating the industry operators’ activities.
The risk-based supervision, according to the World Bank, is a supervision approach that considers each of the risks that companies face and through a structured process, identifies the risks that are most critical to the financial viability of the institution.
Under the model, the supervisory on-site review process looks at the management of the key risk areas of a company and focuses attention on the critical net risk exposures.
NAICOM has since last year, been crusading on the introduction of the European market supervisory initiative in Nigerian market.
At the meeting, the commission informed the insurers that it will expose them to a blue print of the model next month.
Meanwhile, the insurance industry committee, rose from its June edition of its bi -monthly meeting with a decision to rebrand insurance industry and expose Nigerians to core benefits of insurance in their day to day living.
Vice Chairman , publicity sub committee and managing Director Zenith Insurance, Ebelechukwu Nwachukwu, who disclosed at a press briefing on the outcome of the June edition of the committee’s meeting, said the commission, at the meeting, hinted that it will next month exposé the draft of the RBS model to the insurers in preparation for its proper take off.
She said the draft will serve as a roadmap of what the actual implementation of the model will look like.
She said it will also enable the operators go through the model and make their input where necessary.
Nwachukwu, said in its effort to deepen insurance penetration and ensure better service delivery to Nigerians, the committee, has resolved to rebrand the insurance industry with the Nigerian youths as its main target.
She said the aim of the rebranding was to educate the insuring public and the younger generation on the actual benefits of insurance.
According to her, the rebranding will help to change the mindset of Nigerians towards insurance and enable them appreciate insurance more.
She stated that insurers will want the insuring public to be well informed about what insurance can do for them and make them not to see the industry as unnecessary but as a tool that can help them do other things.
The industry rebranding, she added, will help to increase people’s awareness there by making more people demand for insurance services.