The Commissioner for Insurance, Sunday Thomas has said that the introduction of the R3Lab will serve as a tool for mutual interest in maximizing the potential of the African insurance industry and exploring ways in which collaboration, technology and insurance supervisory capacity building is capable.
He said this at the launch of the Risk, Resilient and Regulatory Lab (R3lab) convened by the NAICOM, the UN Environment Programme’s Principles for Sustainable Insurance Initiative (PSI) and FSD Africa.
R3Lab is focused to offer customized capacity-building programs, peer to peer exchange platforms, a comprehensive learning toolkit, a resource centre, data collection and reporting and topical taskforces and forums for insurance supervisors in Africa.
The development of R3Lab is expected to encourage and facilitate regulatory interactions between insurance regulators which will strengthen their methodologies and develop solutions necessary to create an enabling regulatory environment.
Speaking during the launch, Sunday Thomas, the Commissioner for Insurance acknowledged the contribution of the Uk Aid and FSD capital as its development partners whilst noting that the setting up of the R3 lab was given the tool for mutual interest in maximizing the potential of the African insurance industry and exploring ways in which collaboration, technology and insurance supervisory capacity building is capable.
He said, “We are all aware of the evolving risk in Africa’s economy such as climate change, pandemic, digitization, inadequate understanding and lack of confidence in the insurance sector and the need for new strategies to enhance the capabilities of Africa supervisory authorities to effectively regulate and protect insurance policyholders.
“The R3lab offer an intuitive approach towards creating an enabling environment with sound proportionate and fit-for-purpose practices. Risk, resilience and Regulation are the key entry points for the R3lab to build the technical capacity that scales the regulatory capacity on innovation and sustainable insurance.”
He also pointed out that the R3 lab initiative is a third joint initiative that has been vetted through the FSD Africa partnership with NAICOM.
“The first was FSD Africa’s support to the commission in the view of existing regulation including identifying framework and tools required by NAICOM for Risk-Based Capital (RBC). It is common knowledge that we are just at the deployment stage of RBC on our market and we want to migrate from there to the implementation of risk-based capital in which case the issue that surrounds recapitalization would no longer be an issue.
“This will enable NAICOM to fully implement a scalable RBC Framework in Nigeria as well as to help it develop an innovation framework for NAICOM to fulfil its dual objectives of market development and policyholders’ protection.
“It is also gratifying to state that, FSD Africa in furtherance of its support to NAICOM and the Nigerian insurance industry, officially launched the second project, the BimaLab Insurtech Accelerator in February 2022. The platform selects, coaches and mentors Insurtech firms, granting these firms access to FSD Africa BimaLab Grant Fund in developing innovative business solutions focused on solving compelling economic or social problems,” he added.
Mark Napier, CEO, FSD AFRICA appreciated the regulator for its role played to promote a good insurance market; having to supervise and license and also develop the industry, particularly when resources are scarce, to create an inclusive market despite the difficult challenges they have.
He stated that making decisions around innovation means a lot hence the need to recognize these challenges and the effort of the regulator.
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