The National Insurance Commission (NAICOM) has received N225 million ($1.5 million) from the World Bank to strengthen its regulatory framework.
The funds to be spent under the Economic Reforms and Governance Project (ERGP) will enable the commission to migrate from the current manual regime to Information and Technology (IT)-driven supervision of the industry.
Commissioner for Insurance, Fola Daniel, who confirmed the World Bank interest in the reforms, said it would help NAICOM build appropriate capacity to transit from compliance-based supervision to risk-based capitalisation in line with international best practices.
He said that the e-regulation project when fully operational would allow seamless inter-connectivity between the commission and the insurance sector, to ensure real time direct data capture and timely solvency monitoring of operators in the industry.
Daniel explained that the projects in addition to the commissioning of NAICOM’s headquarters recently, will boost the operational capacity of the commission, and bring the services of the commission at par with other regulatory authorities in the financial services sector.
He said: “The reforms in the insurance sector, specifically the code of ethics and corporate governance initiated by the commission is meant to enforce transparency and accountability in the conduct of insurance business in Nigeria in accordance with international best practices.
“If the insurance industry is doing well, then the economy will move faster because it will allow innovation to take place and for entrepreneurs to take risk. Besides, the sector represents an important component in the financial intermediation chain, and remains the backbone of Nigeria’s risk management,” he said.