The Chairman, Nigerian Insurers Association, Eddie Efekoha, has said that risk-based supervision being introduced by the insurance sector’s regulator will enable operators to be monitored in their compliance with the rules and how they approach risk management.
He said this during a workshop on risk-based supervision by the association in Lagos.
Efekoha, “The National Insurance Commission has since commenced the process of consultations and engagement with a view to building consensus among insurance players. This is commendable.”
The NIA chairman said that the workshop was intended to address some key issues that would help improve the industry’s understanding of the subject of discussion.
He said that the RBS was 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.
“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,” he said.
