By Favour Nnabugwu
The National Insurance Commission has rolled out three guidelines to ensure that insurance operators are fully guided by the rules.
The three guidelines are Insurance Regulatory Sandbox Operational Guidelines; Market Conduct Guidelines for Takaful and Retakaful Insurance Operators and Enterprise Risk Management Framework for Takaful and Retakaful Operators in Nigeria.
In the statement released by Mr AbdulRasaaq Salami, Head Communication and Market Development, said as part of its strategic objective to drive innovation of products and services, ensure operators are professional in the conduct of their businesses in line with best practices, recently issued the following guidelines:
Salami reiterated that the Commission expects all Operators to ensure compliance with the new guidelines to the benefit of all stakeholders.
The first is the Regulatory sandbox which refers to a consciously established relaxed regulatory environment for the testing of innovative products, services, be business models, channels of distribution subject to
regulatory discretions and set parameters that have potential of improving insurance inclusiveness and service efficiency in Nigeria.
The second, Market Conduct Guidelines for Takaful and Retakaful Insurance Operators and Enterprise Risk clearly state that all Takaful Insurance Undertaking shall establish and maintain a sound Enterprise Risk Management, ERM.
Framework to support the adequacy of its solvency and comply with all
relevant Sharīah rules and principles.
“This framework shall be comprehensive in nature, dealing with all reasonably foreseeable and relevant material risks of the funds making up”
“The Takaful Undertaking, and shall be formalized through a set of policies,
consistently applied, the TIO’s approach to determining the appetite for risk, its process for managing risks and its Governance related to risk.
The third one, Takaful and Retakaful Operators in Nigeria emphasised that the Guidelines are issued in exercise of the powers conferred on the National
Insurance Commission (the Commission) and shall apply to all Takaful Insurance Institutions in Nigeria effective 1st May 2023.
“The Guidelines shall form part of the regulatory and supervisory tools for Takaful Insurance Institutions and shall be read in conjunction withother extant
provisions, notices, circulars that the Commission had issued or may issue from time to time”.
“Takaful Insurance Operators are required to formally direct their Staff, Agents and other Business Associates or Partners to comply and ensure strict compliance with these Guidelines.
“Takaful Insurance Operators shall establish internal policies and procedures to give effect to the provisions of these Guidelines and shall form part of its internal control”