THE Nigerian Insurers Association (NIA) has called on its members to be prepare for the anticipated Risk-Based Supervision (RBS) regime.
Speaking to Vanguard, the NIA chairman commended the insurance regulatory body, National Insurance Commission (NAICOM) for its consultations and engagement aimed at building consensus among insurance players.
He said that Risk-Based Supervision is 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, and giving priority to the resolution of those risks.
“Risk-Based Supervision (RBS) is gradually becoming the dominant approach to regulatory supervision of financial institutions around the world. 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.
“RBS has a regulatory emphasis of “focusing on what matters” – assessing the degree of risk in the company’s business operations and determining how to reduce the risk as required,” he said.
Efekoha urged Nigerians to develop interest in insurance to support the growth of the industry.
He said it is a collective effort by the industry, Nigerians and all other stakeholders to seek ways of making the impact of insurance business felt in the economic growth plan of the nation.
He reiterated that the sector had a role to play in the growth of the economy and security of lives and property.
The post Insurers should brace up for risk based supervision — NIA appeared first on Vanguard News.