The National Insurance Commission (NAICOM) says it is currently reviewing the issue of capital in the insurance sector to ascertain the deployment of current capital.
Mr. Mohammed Kari, the Commissioner for Insurance, said in Kaduna that the Commission will also not engage in reckless introduction of capital requirements for insurers.
Kari added that the Commission will conduct a pilot inspection on the insurance industry under its Risk-Based Supervision (RBS) initiative before the end of 2017 to test adaptation to the model to determine gaps and problems before full implementation.
He added that the Commission will also commence the second phase of the MDRI scheme to bring in states for effective implementation.
Kari said the Commission will talk to the Nigerian Governors Forum on the importance of the scheme and how it could enhance their capacity to create jobs in their domain and increase Internally Generated Revenue (IGR).
The NAICOM chief lamented that insurance firms in the country were being short-changed in the mobile insurance partnership with telecom operators as the operators rake in over 80 percent of the premium as commission while the insurers bear the burden of paying claims when liabilities occur.
Mr. Barineka Thompson, Director, Inspectorate of NAICOM, called on insurance firms to wake up to the realities of financial technology as it will negatively impact on their operations and growth potential.
He was emphatic that fintech is already affecting the insurance value-chain in terms of product development, distribution and underwriting.