African Insurance Regulators Urged to Align Regulations with AfCFTA Goals
By Patience Ikpeme
Insurance regulators across Africa have received a call to action to collaborate and ensure their regulations align with the objectives of the African Continental Free Trade Agreement (AfCFTA), aimed at facilitating smooth trade activities throughout the continent.
Mr. Olorundare Sunday Thomas, Commissioner for Insurance at the National Insurance Commission (NAICOM), delivered this charge at the General Assembly Meeting of the Organisation of African Insurance Supervisory Authorities (OAISA) in Abuja.
During his address, Mr. Sunday Thomas emphasized the critical importance of regulatory collaboration in the era of the AfCFTA, highlighting the substantial opportunities it presents for trade and economic integration across Africa.
He stressed the need for insurance regulators to harmonize their frameworks with the AfCFTA’s objectives to enable seamless trade within the continent.
Mr. Thomas underscored the urgency of developing human resources and establishing standardized insurance laws and supervisory structures, emphasizing their increased relevance in light of the AfCFTA’s implementation.
Addressing the assembly, Mr. Thomas outlined NAICOM’s proactive approach to market development within the Nigerian insurance industry. He highlighted key initiatives such as the adoption of International Financial Reporting Standards (IFRS) 17 from January 2023, which enhances transparency and financial stability within the insurance sector.
Furthermore, the implementation of a Risk-Based Supervision framework allows NAICOM to tailor its regulatory approach to individual insurance company risk profiles, thereby enhancing regulatory efficiency and effectiveness.
The introduction of bancassurance to enable banks to distribute insurance products has expanded consumer access, complemented by NAICOM’s issuance of guidelines on corporate governance and market conduct to promote ethical practices.
Mr. Thomas emphasized the comprehensive agenda of the OAISA assembly, reflecting a commitment to addressing critical issues facing the insurance sector across Africa.
Key areas of focus include the adoption of International Financial Reporting Standards to ensure transparency and accountability within African insurance institutions, as well as collaboration on Anti-Money Laundering and Counter-Terrorism Financing to safeguard industry integrity and protect policyholders and stakeholders.
By advocating for regulatory alignment, showcasing successful reforms, and stressing the importance of collaboration, Mr. Thomas positioned Nigeria as a leader in African insurance development.
The OAISA assembly serves as a vital platform for African nations to exchange best practices, tackle shared challenges, and collectively shape a robust and prosperous African insurance landscape.
