Nigeria’s insurance industry is stepping up efforts to develop actuarial expertise ahead of the implementation of a risk-based capital (RBC) framework, with a multi-million-naira Joint Actuarial Fund scheduled to commence operations in January 2027.
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The proposed fund is expected to support the development of specialist skills required to improve risk assessment, premium pricing and financial management as insurers adjust to a new regulatory regime following the completion of the industry’s recapitalisation exercise.
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The initiative comes as the National Insurance Commission (NAICOM) advances plans to align insurers’ capital requirements with the nature, scale and complexity of the risks they undertake, in a move aimed at strengthening financial stability and protecting policyholders.
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Speaking at a virtual briefing on the outcome of the Insurers’ Committee meeting held in Lagos, the Chairman of the Committee’s Publicity Sub-committee, Ebelechukwu Nwachukwu, said the fund is expected to become operational in January 2027.
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Nwachukwu, who is also Managing Director/Chief Executive Officer of REX Insurance Limited, said NAICOM would contribute 20 per cent of the fund, while insurance operators, industry associations, non-governmental organisations and other relevant stakeholders would provide the remaining 80 per cent.
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Although the final amount and operational details are yet to be disclosed, the initiative is expected to strengthen the pool of actuarial professionals available to the industry and support the development of local expertise.
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The development assumes greater significance as the sector moves beyond recapitalisation towards a system in which insurers’ financial resources will be assessed against the risks in their business portfolios.
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NAICOM had earlier stated that the successful completion of the recapitalisation exercise would provide a stronger foundation for risk-based supervision, with regulatory capital appropriately aligned with the nature, scale, complexity and risk profile of each insurance operator.
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In a statement announcing the completion of the exercise on August 2, 2026, the commission said its continuing reforms were aimed at building a stronger, adequately capitalised and policyholder-focused industry capable of supporting economic growth and deepening insurance penetration.
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The commission also identified the implementation of the risk-based capital framework as a major regulatory priority following recapitalisation.
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Earlier, NAICOM had appointed Ernst & Young (EY) as consulting actuary to support the finalisation and implementation of the framework. The appointment, announced on June 9, 2026, was intended to accelerate the transition to a risk-sensitive supervisory regime and strengthen the commission’s technical capacity.

According to the commission, the process would involve quantitative impact studies, industry-wide data collection, stakeholder engagement and the development of appropriate regulatory parameters before the framework’s implementation.
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The proposed Joint Actuarial Fund is expected to complement these regulatory efforts by helping to develop the professional capacity needed to support more sophisticated risk evaluation and pricing practices.
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Under a risk-based capital regime, insurers’ capital requirements will reflect the risks inherent in their operations rather than relying solely on uniform minimum capital thresholds. This makes actuarial expertise essential to evaluating underwriting exposures, calculating liabilities, developing products and determining appropriate premiums.
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Nwachukwu said the importance of actuaries would increase as the industry entered its next phase of development, making investment in talent development necessary.
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Actuaries use mathematical, statistical and financial techniques to assess the likelihood and financial impact of future events. In insurance, their work helps companies determine premiums, estimate claims liabilities, assess solvency and ensure that products are priced sustainably.
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The industry’s ability to develop and retain such professionals will therefore be important to the effective implementation of the new capital regime, particularly in ensuring that insurers do not assume risks beyond their financial capacity.
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Nwachukwu said the process of developing the risk-based capital framework was expected to be concluded by March 2027.
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The transition is expected to place greater emphasis on insurers’ risk-management systems, underwriting discipline and ability to maintain adequate capital to meet claims obligations.