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Chuks Udo Okonta
FSD Africa has reiterated its commitment to the growth of insurance across the continent through Risk, Resilience, and Regulation
(R3lab) initiative.
The Chief Executive Officer, FSD Africa, Mark
Napier, disclosed this today at the launch of the Risk, Resilience and Regulatory Laboratory (R3Lab) initiative in Lagos, stressing that the firm believes healthy financial markets are the foundation of a fair and thriving economy.
He noted that the firm supports breakthrough ideas that will transform Africa’s financial markets, and deliver programmes where the potential for impact is greatest.
He maintained that Africa can unlock new pathways to prosperity and resilience, while helping the world realise the promise of the Paris Agreement and tackle the dual crises of climate change and biodiversity loss.
“We believe that a financial system that is acceptable, stable and transparent, can also help to create the condition for a fair and sustainable future,” he submitted.
Commissioner for Insurance Sunday Thomas, said the event was conceived by its development partners, Financial Sector Deepening Africa (FSD Africa) funded by UK Aid, adding that the setting up of the R3Lab was given impetus by their mutual interest in maximizing the untapped potential of the African insurance industry and exploring ways in which collaboration, technology and insurance supervisory capacity building is capable of not only mitigating the impact of specific challenges experienced in the regulatory environment but also improve the regulatory effectiveness of African insurance supervisory authorities.
“We are all aware of the evolving risks in the Africa economic space such as climate change, pandemics, digitalisation, inadequate understanding and lack of confidence in the insurance sector and the need for new strategies to enhance the capabilities of African insurance supervisory authorities to effectively regulate and protect insurance policyholders,” he said.
Thomas posited that the R3Lab offers a three-tiered approach towards creating an enabling regulatory environment and equipping the regulator with sound, proportionate and fit-for-purpose practices.
Risk, Resilience, and Regulation, he said are the key entry points for the R3Lab to build the technical capacity and skills of the regulator on innovation and sustainable insurance.
According to him, the R3Lab will facilitate the design of customised capacity-building programs and set up peer to peer exchange platforms, comprehensive learning toolkits, a resource center for data collection and reporting and topical taskforces and forums for insurance supervisors in Africa.
“I am pleased to confirm that this platform is the third joint-initiative that has been birthed through FSD Africa’s partnership with NAICOM.
“The first was FSD Africa’s ongoing support in the review of existing regulations including identifying and articulating the key steps, framework(s), and tools required by NAICOM for Risk-Based Capital (RBC).
“This will enable NAICOM fully implement a scalable RBC Framework in Nigeria as well as to help it develop an innovation framework for NAICOM to fulfill its dual objectives of market development and policyholders’ protection,” Thomas posited.
He maintained that it is also gratifying to state that, FSD Africa in furtherance of its support to NAICOM and the Nigerian insurance industry, they officially launched the second project, the BimaLab Insurtech Accelerator in February 2022, adding that the platform selects, coaches and mentors insurtech firms, granting these firms access to FSD Africa BimaLab Grant Fund in developing innovative business solutions focused on solving compelling economic or social problems.
He noted that 10 selected participants of the BimaLab are already undergoing 10 weeks intensive mentorship and coaching.
Thomas on behalf of the Management and staff of the National Insurance Commission, expressed sincere gratitude to FSD Africa for the invaluable support.
He expressed hope that through the commissioning of these projects and platforms, will create an enabling environment for the development of insurance products which address the day-to-day challenges experienced by Nigerians in the face of environmental related risks.
He maintained that availability of better products is likely to result in better service delivery and increase financial returns to investors, adding that in recognition of this, NAICOM aims to achieve greater public trust and confidence in the insurance sector through “Innovation, Distribution and Effective/Efficient Service Delivery” which has been the cornerstone of its strategic focus and actions.
Head of Information Technology Departments from insurance regulators in Nigeria; Ghana, Kenya and Uganda shared what they are doing to deepen insurance penetration through technology.
