The National Insurance Commission (NAICOM) has appointed Ernst & Young (EY) as Consulting Actuary to support the finalization and implementation of Nigeria’s Risk-Based Capital (RBC) framework, a major step in the ongoing reform of the country’s insurance sector.
The appointment was formalized during a working meeting between NAICOM and EY in Abuja as part of the Commission’s 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 designed to strengthen financial stability and enhance policyholder protection.
According to him, the move follows the recent enactment of enabling legislation and the ongoing Minimum Capital Requirement (MCR) recapitalization exercise, which have created the foundation for the implementation of a risk-based capital framework tailored to the Nigerian insurance market.
Omosehin explained that the deployment of the RBC framework would be aligned with the completion of the current recapitalization programme. He disclosed that the next phase of the project would include Quantitative Impact Studies (QIS) and industry-wide data collection to support the recalibration of key parameters, strengthen stakeholder engagement, and guide the issuance of the final framework and accompanying regulatory guidelines.
Under the engagement, EY will provide technical expertise to accelerate implementation, build NAICOM’s internal capacity, and ensure that the framework is transparent, robust, and suited to the realities of the Nigerian insurance industry.
Responding, representatives of EY reaffirmed the firm’s commitment to delivering the assignment as a priority project. The company pledged to work closely with NAICOM and industry stakeholders to develop a practical and effective Risk-Based Capital framework, as well as the tools required for its successful implementation.
The appointment marks a significant milestone in NAICOM’s efforts to modernize insurance regulation in Nigeria and align the sector with international best practices, while promoting greater resilience, stability, and confidence in the industry.
