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, the National Insurance Commission (NAICOM) recently issued Insurance Regulatory Sandbox Operational Guidelines.
NAICOM, in a statement signed by the Head, Corporate Communication and Market Development, Rasaaq ‘Salami, added that other guidelines issued are: the Market Conduct Guidelines for Takaful and Retakaful Insurance Operators and Enterprise Risk Management Framework for Takaful and Retakaful Operators in Nigeria.
According to the guidelines made available to our correspondent, it is explained that the Regulatory Sandbox Operational Guidelines is issued in exercise of the powers conferred to NAICOM Act 1997 and the Insurance Act 2003.
The guidelines stated that the Regulatory sandbox refers to a consciously established relaxed regulatory environment for the testing of innovative products, services, 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 guidelines outlined that it is aimed towards providing insurance institutions, other firms and persons the opportunity to test business models, products and services that will enhance efficiency in meeting consumers’ needs.
It will also help to encourage innovation that will drive financial inclusion and positive competition, and to promote and deliver economic benefits, by lowering the cost of business operations.
The guidelines stated that an applicant will be eligible to be considered for the sandbox after meeting some criteria.
“Must demonstrate the potential to advance inclusive insurance – The proposed product, service or solution is genuinely innovative with clear potential to advance the objectives of Inclusive Insurance by improving accessibility, efficiency, security and/or quality in the provision of insurance services to consumers in Nigeria.
“The Applicant shall be a registered business in Nigeria, the applicant must have a Fit and Proper Management and Leadership, must demonstrate that it has conducted sufficient diligence to understand the potential risks and/or legal and regulatory requirements for deploying the proposed insurance product, service or solution
“The Commission will accept applications from the following categories of applicants: Insurers, Insurance Brokers, Loss Adjusters, any other applicant as the Commission deems fit,” it read.
The NAICOM spokesperson noted that the Commission expects all operators to ensure compliance with the new guidelines to the benefit of all stakeholders.
