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Chuks Udo Okonta
Risk-Based Supervision (RBS) offers a tailored and proactive framework that enables regulatory authorities to identify, assess, monitor, and mitigate risks effectively, the President Chartered Insurance Institute of Nigeria (CIIN) Edwin Igbiti, has said.
He said this at the 2024 Insurance Industry Parley, organised by the CIIN, today in Lagos, adding that by aligning regulatory resources with the level of risk posed by insurance entities, insurance practitioners can enhance market stability, consumer protection, and overall industry performance.
Igbiti submitted that in an era marked by rapid technological advancements, evolving customer expectations, and complex global challenges, insurance industry stands at a pivotal crossroads.
“We are not merely responding to change; we are driving it. Today’s parley is an opportunity to reflect on our progress, share insights, and chart a course for a future that balances innovation with the fundamental principles of trust and security that define our profession,” he posited.
He noted that as practitioners pave the way for a stable and innovative future, it is imperative that they embrace and implement robust risk-based supervision practices to ensure the industry’s resilience and growth.
The CIIN President maintained that
with the dynamic nature of the insurance landscape and the evolving risk environment, traditional, one-size-fits-all supervision approaches may no longer suffice, submitting that risk-based supervision offers a tailored and proactive framework that enables regulatory authorities to identify, assess, monitor, and mitigate risks effectively.
He said it is through collective efforts and shared vision that practitioners would continue to thrive and lead with integrity and foresight, whilst imploring them to seize the opportunity to innovate, inspire, and insure a brighter future for all.
The Head, Technical Services Royal Exchange General Insurance Company (REGIC) Dr. Joyce Odiachi, who was one of the discussants at the event, spoke on importance of RBS, considering it as a tool that enables organisations to evaluate themselves; gain insights into mitigation measures and how to effectively manage available resources.
She stressed the need for operators to understand that the implementation of RBS is not a “we against them” mentality, but the need for collaboration between operators and regulators.
Dr. Joyce Odiachi also highlighted the need for resources, skills and capacity to ensure successful implementation of the RBS, whilst calling for an urgent review of the current Insurance Act.
