Business
Insurance sector floats joint actuarial development fund
…As NAICOM appoints EY to guide sector through RBS transition
By Rosemary Iwunze
The Nigerian insurance industry has floated a Joint Actuarial Development Fund to tackle actuarial talent deficit plaguing the insurance sector.
Chairman of the Nigerian Insurers Association, NIA, and Managing Director/CEO of Rex Insurance Limited, Mrs. Ebelechukwu Nwachukwu, who disclosed this revealed that the fund is slated for full operational takeoff by January 2027.
Nwachukwu who disclosed this during a virtual press briefing held to apprise journalists of the outcomes of the Insurers’ Committee meeting, also stated that the National Insurance Commission, NAICOM, has appointed Ernst & Young, EY, as its consultant to guide the Nigerian insurance industry through a transparent and structured transition to a Risk-Based Capital (RBC) regime.
Speaking on the development fund, Nwachukwu noted that the funding model is specifically designed to salvage the dwindling pipeline of professional actuaries in the country.
She noted that under the structured framework, NAICOM is set to inject 20 percent of the fund, while insurance operators will chip in the remaining balance, complemented by robust financial backing from external non-governmental development partners.
She said: “The introduction of the actuarial lifeline formed a core highlight of broader regulatory pronouncements following NAICOM’s appointment of global professional services firm Ernst & Young (EY) as consultant to midwife the industry’s transition to a Risk-Based Capital (RBC) regime.”
According to Nwachukwu, EY has already made high-level presentations to chief executive officers across the market. An exposure draft of the RBC framework will soon be laid before operators for review prior to its final adoption by the Commission.
Meanwhile, on the appointment of EY as its consultant to guide the Nigerian insurance industry through a transparent and structured transition to a Risk-Based Capital (RBC) regime, Nwachukwu noted that the Commissioner for Insurance, Mr. Olusegun Omosehin, announced the appointment during the Insurers Committee meeting alongside other crucial regulatory directives shaping the post-recapitalisation era.
Addressing concerns regarding funds deposited in Central Bank of Nigeria, CBN, escrow accounts during the recapitalisation exercise, Nwachukwu revealed that NAICOM has formally instructed the apex bank to release the funds back to the underwriters’ original accounts.
She explained that the CBN is currently executing its internal due diligence processes, assuring operators that the funds are expected to be fully returned within October.
“NAICOM has done its part by issuing instructions to the CBN. The funds will be returned to the exact accounts from which they were sent once the CBN completes its verification,” she stated.
She further highlighted that 50 insurance companies successfully met the capital benchmarks post-July 31, urging operators to deploy the enhanced capital base to expand local underwriting capacity, increase retention during reinsurance renewals, and provide cover for emerging exposures such as cyber and climate risks.
The NIA Chairman urged underwriters to step up claims settlement processes and embrace digital integration to align with NAICOM’s fully automated operational framework and newly launched Personal Service Charter.
She also charged companies to develop core, insurance-focused health and medical products, distinct from Health Maintenance Organisation (HMO) arrangements, to boost insurance penetration across the country.
The press briefing also marked a transition in the leadership of the Insurers’ Committee subcommittees. With Nwachukwu assuming office as the NIA Chairman, the leadership of the Communications and Stakeholder Engagement Subcommittee has been handed over to Mr. Maruf Apampa, who will steer the subcommittee’s public awareness and stakeholder engagement initiatives.
