Emma Thompson
Thu, Aug 3, 2023 7:45 PM

NAICOM Partners with FSD Africa to Enhance Insurance Industry

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NAICOM Partners with FSD Africa to Enhance Insurance Industry
The National Insurance Commission (NAICOM) has collaborated with Financial Sector Deepening Africa (FSD) to strengthen the Nigerian insurance industry. The partnership aims to build staff capacity in the development of a risk-based capital framework, incorporation of ESG principles, and fostering innovation. The training program conducted by FSD Africa for NAICOM personnel lasted two weeks and covered various aspects related to insurance operations and regulation. This initiative is expected to enhance the overall performance and competitiveness of the insurance sector in Nigeria.

Lagos – The National Insurance Commission (NAICOM) has cemented a partnership with Financial Sector Deepening Africa (FSD) in an effort to bolster the Nigerian insurance industry. The collaboration aims to develop staff capacity in key areas such as the adoption of risk-based capital (RBC) framework, integration of Economic, Social, and Governance (ESG) principles into insurance operations, and fostering innovation among regulatory bodies and insurance operators.

The partnership was marked with an official visit to NAICOM's headquarters in Abuja by Mr. Mark Napier, Managing Director of Financial Sector Deepening Africa, and his management team. The visit followed the signing of an agreement between NAICOM and FSD Africa to undertake risk-based capital training for seventy NAICOM personnel.

For the past two weeks, the training program has been in progress and recently concluded. The sessions were facilitated by Mr. Elias Omondi, Principal in charge of innovation at FSD Africa, who shared his expertise and insights regarding best practices in the insurance industry.

The collaboration between NAICOM and FSD Africa brings substantial benefits for the Nigerian insurance sector. One of the key outcomes of this partnership is the development of a risk-based capital framework and toolkit. The implementation of a risk-based approach enables insurance companies to allocate capital more efficiently based on their specific risk profiles, ensuring adequate reserves to cover potential losses. This regulation would enhance the industry's stability and resilience.

In addition, the incorporation of Economic, Social, and Governance (ESG) principles into the operations of insurance companies is another significant aspect addressed by the partnership. By integrating ESG considerations, insurers can align their practices with sustainability goals, promote responsible investing, and contribute to the overall development of the Nigerian economy.

Moreover, the collaboration aims to foster innovation within the insurance industry. Through the joint efforts of NAICOM and FSD Africa, an innovation portrait will be developed to facilitate the adoption of innovative practices by regulatory bodies and insurance operators. This initiative reflects the industry's commitment to adapt to evolving market dynamics and technological advancements.

The partnership between NAICOM and FSD Africa reflects a shared commitment to enhancing the overall performance and competitiveness of the Nigerian insurance industry. By equipping NAICOM personnel with the necessary skills and knowledge, the collaboration seeks to strengthen industry regulation, promote sustainable practices, and stimulate innovation. This development marks a positive step towards a more robust and customer-focused insurance sector in Nigeria.

Source of content: OOO News 2023-08-03 News

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