The National Insurance Commission (NAICOM) has appointed global professional services firm Ernst & Young (EY) as Consulting Actuary to support the finalization and implementation of Nigeria’s Risk-Based Capital (RBC) framework, a major step toward strengthening the country’s insurance regulatory landscape.
The appointment was formalized during a working meeting 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 steadily transitioning the Nigerian insurance industry toward a risk-based supervisory and capital regime aimed at enhancing financial stability and protecting policyholders.
According to him, the move follows recent legislative developments and the ongoing Minimum Capital Requirement (MCR) recapitalization exercise, which have paved the way for accelerated efforts to operationalize a risk-based capital framework tailored to the unique needs of the Nigerian insurance market.
Omosehin explained that the deployment of the RBC framework will be aligned with the completion of the current MCR exercise. He disclosed that the next phase of implementation will involve Quantitative Impact Studies (QIS) and industry-wide data collection, which will help recalibrate critical parameters, deepen stakeholder engagement, and guide the issuance of the final framework and accompanying regulatory guidelines.
Under the engagement, EY will provide technical expertise to fast-track implementation, build NAICOM’s internal actuarial and regulatory capacity, and ensure that the resulting framework is transparent, robust, and fit for purpose.
Responding, EY reaffirmed its commitment to delivering the assignment as a priority project. The firm pledged to work closely with NAICOM and industry stakeholders to develop a practical and implementable risk-based capital framework, as well as the tools required for effective execution.
The appointment marks a significant milestone in NAICOM’s broader reform agenda and underscores its commitment to aligning Nigeria’s insurance regulatory framework with global best practices while fostering a more resilient and competitive insurance sector.
