The National Insurance Commission (NAICOM) has moved to accelerate the transition of Nigeria’s insurance industry to a risk-based supervisory and capital regime, as part of efforts to strengthen financial stability and enhance policyholder protection.
The disclosure was made by the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr Olusegun Omosehin, in a statement issued on Thursday in Abuja.
According to the commission, global professional services firm Ernst & Young (EY) has been appointed as Consulting Actuary to support the finalisation and implementation of Nigeria’s Risk-Based Capital (RBC) framework.
Omosehin said the appointment forms part of NAICOM’s ongoing Risk-Based Capital Implementation Project, which is designed to align the insurance sector’s capital requirements with the specific risk profiles of operators.
He explained that the transition to a risk-based framework represents a major regulatory shift aimed at improving insurance companies’ resilience and strengthening consumer confidence in the industry.
“This strategic shift is aimed at strengthening financial stability and enhancing policyholder protection across the industry,” he said.
According to him, following the enactment of relevant legislation and the ongoing Minimum Capital Requirement (MCR) recapitalisation exercise, the commission has intensified efforts to operationalise an RBC framework tailored to the realities of the Nigerian insurance market.
“Under the engagement, EY will support NAICOM to accelerate implementation, strengthen internal technical capacity, and ensure that the resulting regulatory framework is robust, transparent and fit for purpose within the Nigerian market context,” Omosehin stated.
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The NAICOM chief disclosed that implementation of the RBC framework would be aligned with the completion of the current recapitalisation exercise.
He noted that the next phase of the project would include Quantitative Impact Studies (QIS) and extensive industry-wide data collection exercises.
According to him, the initiatives will help regulators recalibrate key risk parameters, deepen stakeholder engagement, and provide the basis for issuing the final RBC framework and supporting regulatory guidelines.
“These activities will support recalibration of key parameters, deepen stakeholder engagement, and inform the issuance of the final framework alongside comprehensive regulatory guidelines,” he said.
EY, on its part, reaffirmed its commitment to delivering the assignment as a priority engagement.
The firm said it would work closely with NAICOM and industry stakeholders to develop a practical, implementable risk-based capital framework, along with the supporting tools required for effective execution and supervision.
What you should know
The latest development comes amid ongoing efforts by NAICOM to strengthen the insurance sector and improve the financial health of operators.
Recently, Omosehin reiterated the commission’s commitment to preventing the collapse of any licensed insurance company in Nigeria, stressing that policyholder protection remains a key regulatory priority.
He made the remarks during the 2026 Awards and Recognition Ceremony of the Nigerian Insurers Association (NIA) in Lagos.
The insurance industry is currently undergoing a recapitalisation programme, with operators expected to meet new Minimum Capital Requirement (MCR) thresholds before the July 31, 2026 deadline set by the commission.
NAICOM believes the combination of recapitalisation and risk-based supervision will create a more resilient, transparent, and globally competitive insurance industry capable of supporting Nigeria’s long-term economic development