Insurance

NIA positions for risk based supervision regime

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Director-General of Nigerian Insurers Association (NIA), Mr. Olorundare Sunday Thomas, Lead, Business Development, Alexander Forbes, South Africa, Schalk van Tonder, Deputy Chairman of NIA, Mrs. Yetunde Ilori and Chairman of the Association, Mr. Eddie Efekoha at the One-day Workshop on Risk-Based Capital organised by the NIA.

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Chuks Udo Okonta

The Nigerian Insurers Association (NIA) has organised a one-day workshop to equipped its members for the much anticipated Risk-Based Supervision (RBS) regime, which would soon takeoff.

According to a statement by its Head, corporate affairs Davis Iyasere, the Chairman of the association, Eddie Efekoha, at the event which held in Lagos, said, the programme was designed to address some of the key issues that will help improve the operators’ understanding of the (RBS).

He also commended the National Insurance Commission (NAICOM) for its consultations and engagement aimed at building consensus among insurance players.

Efekoha said Risk-Based Supervision (RBS) is gradually becoming the dominant approach to regulatory supervision of financial institutions around the world, adding that it is a comprehensive, formally structured system that assesses risks within the financial system, giving priority to the resolution of those risks.

“I want to thank Alexander Forbes for coming to our assistance at this critical time and do hope that they will leave here highly fulfilled that they have contributed to the development of the Nigerian insurance market and most importantly, the enhancement of the skills and competencies of our members in the area of Risk based supervision and by extension, risk based capital.

“Risk-Based Supervision (RBS) is gradually becoming the dominant approach to regulatory supervision of financial institutions around the world. It is a comprehensive, formally structured system that assesses risks within the financial system, giving priority to the resolution of those risks.
“Often contrasted with rules-based regulation, it is also known as principles or compliance-based supervision; a method of regulation which involves checking for and enforcing compliance with rules – legislation, regulations or policies – that apply to an entity.

“RBS has a regulatory emphasis of “focusing on what matters” – assessing the degree of risk in the company’s business operations and determining how to reduce the risk as required,” he said.

Efekoha posited that with RBS, entities are always being monitored, both for compliance with the rules and for how they approach risk management.

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