Insurance Industry Sets January 2027 Launch for Joint Actuarial Fund
Nigeria’s insurance industry is planning to launch a Joint Actuarial Fund in January 2027 to strengthen actuarial expertise, improve risk pricing and support the sector’s next phase of growth following recapitalisation.
The fund will be supported by the National Insurance Commission (NAICOM), insurance operators, industry associations, non-governmental organisations and other stakeholders. NAICOM is expected to contribute 20 per cent, while the remaining 80 per cent will come from operators and other stakeholders.
Ebelechukwu Nwachukwu, Managing Director/Chief Executive Officer of REX Insurance Ltd and immediate past Chairman of the Publicity Subcommittee of the Insurers’ Committee, disclosed this during a virtual briefing on the outcome of the committee’s meeting held in Lagos.
She said the initiative was designed to promote the growth of the actuarial profession and develop more professionals with the skills needed by the insurance industry.
Nwachukwu noted that actuaries would play a more important role following the industry’s recapitalisation exercise, particularly in product development, risk assessment and pricing.
Actuaries use data and statistical methods to assess financial risks, estimate the likelihood of future events and help insurers determine appropriate premiums and manage their financial obligations.
The proposed fund is expected to support the development of this expertise as insurers adjust to the industry’s changing regulatory and capital requirements.
Meanwhile, NAICOM is working with professional services firm Ernst & Young (EY) to develop a framework for implementing Risk-Based Capital (RBC) in Nigeria’s insurance industry.
The framework is expected to be completed by March 2027, according to Nwachukwu.
Under the proposed system, insurers will be expected to hold capital that reflects the risks they undertake, making capital adequacy more closely linked to their risk exposure.
The move follows the conclusion of the industry’s recapitalisation exercise at the end of July 2026 and represents the next phase of regulatory reform.
Nwachukwu said the framework would help ensure that risks are appropriately priced and improve insurers’ capacity to meet claims obligations.
She also disclosed that the briefing was her final assignment as chairman of the Insurers’ Committee Publicity Subcommittee, as she prepares to focus on her new role as Chairman of the Nigerian Insurers Association.
Moruf Apampa, Managing Director/Chief Executive Officer of NSIA Insurance Company Limited, is taking over as chairman of the publicity subcommittee.