NAICOM tasks insurance operators on capital requirement, others
Operators in the nation’s insurance industry may have to take the issue of capital requirement to top their business strategy as the National Insurance Commission (NAICOM) has determined to beam its searchlight on risk-based capital and supervision as areas of focus for the commission this year.
This was disclosed by the Deputy Commissioner for Insurance, Sunday Thomas, who delivered a paper tagged: “The Role of the Regulator in Shaping Insurance Industry Performance in 2019”, at just concluded 2019 Business Outlook, organised by the Chartered Insurance Institute of Nigeria (CIIN).
According to him, optimal development of the insurance market would be to facilitate financial inclusion initiatives and promote policy that would facilitate public access to insurance services nationwide.
Other areas, according to the commission, include monitoring of asset and liability management practices; enforcement of code of corporate governance; sustained surveillance on operators activities, especially those with issues of regulatory concern; attention to financial reporting practices by holding board and external auditors responsible; and preparing for implementation of International Financial Reporting Standard (IFRS) 9 and IFRS 17.
The key areas of regulatory concerns in the sector, he said, are corporate governance failure; inadequacy and poor quality of capital and asset structure; delays in the settlement of reported insurance claims and reduction in the market capacity to underwrite special risks.
He said they are also concerned about the inadequate risk assessment and pricing among insurance operators, inadequate deployment of technology in the industry; insufficient support to market development initiatives; challenges in financial reporting practices and deficiency in human capital needs.
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