The National Insurance Commission (NAICOM) has called on insurance companies to develop and introduce cyber insurance products in response to increasing digital risks.
This was stated during the Insurers’ Committee Meeting held in Lagos on Wednesday.
Mrs. Ebelechukwu Nwachukwu, Head of the Communication and Stakeholders Management Sub-committee, emphasized compliance with Nigeria’s Data Protection Regulations.
Nwachukwu disclosed that insurance practitioners have been urged to undergo training on data protection measures.
“Given the global digital transformation, NAICOM sees the need to develop cyber insurance products.
Operators should begin engagements to roll out cyber insurance products,” she added.
She also noted that NAICOM is collaborating with the National Information Technology Development Agency (NITDA) and the Nigeria Data Protection Commission to advance this initiative.
Insurers to settle all resolved cases
The commission directed insurance companies to pay for all cases resolved by the regulator, as part of efforts to sanitize the industry and improve policyholder confidence.
This move aims to sanitize the insurance sector by reducing complaints from policyholders and promoting accountability among insurers
“The NAICOM Commissioner wants insurance companies to engage their brokers and customers to reduce outstanding claims,” she said.
Aviation and third-party motor insurance
NAICOM also addressed risks in Nigeria’s aviation industry, emphasizing the need for better security measures.
- According to Nwachukwu, discussions are ongoing to enhance insurance coverage in the aviation sector.
“NAICOM urges support for enforcing third-party motor insurance and seeks collaboration on its innovation lab,” she said.
- On regulatory compliance, NAICOM urged insurance firms to meet all financial reporting requirements to ensure transparency. The Commissioner also stressed the importance of solvency control within the industry.
“The NAICOM Commissioner spoke on solvency control, stressing that CEOs must educate boards on the required solvency levels for insurance companies,” she said.
She further stated that the current solvency framework will be reviewed, as it is based on existing capital requirements.
What you should know
The National Insurance Commission (NAICOM) introduced new regulatory requirements for life insurance companies engaged in annuity business in Nigeria.
- According to a circular issued by the Commission in Abuja, insurance companies must employ at least one qualified actuary responsible for conducting and implementing Assets-Liability Matching (ALM) analysis.
- These companies must submit ALM reports quarterly, adhering to the Standards of Actuarial Practice (NSAP). Companies unable to meet the additional regulatory expenses must transfer their annuity portfolio within 180 days.
The circular, effective from February 1st, aims to ensure a stable and secure annuity business while fostering best practices in managing annuity portfolios within the Nigerian insurance sector.
