NAICOM Calls on Insurers to Introduce Cyber Insurance in Nigeria

The National Insurance Commission (NAICOM) has urged insurance companies to develop cyber insurance policies to address the growing risks associated with digital transformation.

This announcement was made during the Insurers’ Committee Meeting held in Lagos on Wednesday.

Mrs. Ebelechukwu Nwachukwu, Chair of the Communication and Stakeholders Management Sub-committee, emphasized the need for compliance with Nigeria’s Data Protection Regulations.

Nwachukwu highlighted the importance of data protection training for insurance professionals to strengthen cybersecurity measures.

“In light of the increasing reliance on digital technology, NAICOM is encouraging insurers to introduce cyber insurance products. Industry players should begin discussions to facilitate the rollout,” she stated.

She further mentioned that NAICOM is partnering with the National Information Technology Development Agency (NITDA) and the Nigeria Data Protection Commission to support this initiative.

Related News:

• NAICOM Introduces New Annuity Guidelines
• Police and NAICOM Set Up Committee to Enforce Compulsory Insurance

NAICOM has instructed insurance providers to settle all outstanding claims that have been resolved by the regulator, aiming to enhance transparency and restore confidence in the industry.

This initiative seeks to reduce policyholder complaints and improve accountability among insurers.

“The NAICOM Commissioner has advised insurance companies to collaborate with their brokers and clients to minimize unresolved claims,” she said.

The commission also addressed challenges within Nigeria’s aviation sector, stressing the need for improved insurance coverage to mitigate risks.

Discussions are ongoing to refine policies in this sector. Additionally, NAICOM is advocating for stricter enforcement of third-party motor insurance and is seeking partnerships to drive innovation in the industry.

Strengthening Regulatory Compliance and Solvency Control

NAICOM has reiterated the importance of regulatory compliance, urging insurers to fulfill financial reporting obligations and maintain industry transparency.

The Commissioner also underscored the necessity of solvency control, emphasizing that company executives must ensure their boards understand the required solvency levels for their businesses.

She revealed that NAICOM is reviewing the existing solvency framework, which is currently aligned with existing capital requirements.

NAICOM has introduced fresh regulatory requirements for life insurance companies managing annuity portfolios in Nigeria.

As per a circular released in Abuja, insurance firms must hire at least one certified actuary responsible for conducting and implementing Asset-Liability Matching (ALM) analysis.

Firms are required to submit ALM reports quarterly, adhering to the Standards of Actuarial Practice (NSAP). Companies unable to meet the additional financial obligations must transfer their annuity portfolios within 180 days.

These new regulations, effective from February 1st, are designed to ensure stability in the annuity sector while promoting best practices in portfolio management.