FSD Africa, a not-for-profit company funded by the UK Department for International Development, has launched the Risk, Resilient and Regulatory Lab (R3lab) with the aim of improving the regulatory landscape in Nigeria.

The kick-off meeting was convened by the National Insurance Commission (NAICOM) of Nigeria, the Principles for Sustainable Insurance (PSI) initiative of the United Nations Environment Program and FSD Africa.

The development of R3Lab should encourage and facilitate regulatory interactions between insurance regulators which will strengthen their methodologies and develop the solutions needed to create a favorable regulatory environment.

R3Lab focuses on offering customized capacity building programs, peer-to-peer exchange platforms, comprehensive learning toolkit, resource center, data collection and reporting and thematic working groups and forums for insurance supervisors in Africa.

What they say

Speaking at the launch, Sunday Thomas, the Insurance Commissioner acknowledged the capital contribution of Uk Aid and FSD as development partners while noting that the setting up of the R3 lab was given as a tool for mutual interest in maximizing Africa’s potential. insurance industry and explore ways in which collaboration, technology and capacity building in insurance supervision is possible.

He said, “We are all aware of the evolving risks in the African economy such as climate change, pandemic, digitalisation, insufficient understanding and lack of confidence in the insurance sector and the need for new strategies to strengthen the capacities of African supervisory authorities to effectively regulate and protect insurance. insured.

“The R3lab offers an intuitive approach to creating an enabling environment with sound, proportionate and fit-for-purpose practices. Risk, resilience and regulation are the main entry points of the R3lab to build technical capacity that scales regulatory capacity for innovation and sustainable insurance.

He also pointed out that the R3 Lab initiative is a third joint initiative that has been endorsed by the FSD Africa partnership with NAICOM.

“The first was FSD Africa’s support to the commission in view of the existing regulations, including the identification of the framework and tools required by NAICOM for venture capital (RBC). It is common knowledge that we are only at the stage of deploying RBC in our market and that we want to migrate from there to the establishment of risk capital in which case the question surrounding recapitalization would no longer arise. .

“This will enable NAICOM to fully implement a scalable RBC framework in Nigeria and assist in developing an innovation framework for NAICOM to fulfill its dual objectives of market development and policyholder protection.

“It is also gratifying to state that, FSD Africa, as part 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 sponsors Insurtech companies, granting them companies access to the FSD Africa BimaLab Grant Fund to develop innovative business solutions focused on solving compelling economic or social problems,” he added.

Mark Napier, CEO, FSD AFRICA praised the regulator for its role in promoting a good insurance market; having to oversee and license and also develop the industry, especially when resources are scarce, to create an inclusive market despite the difficult challenges they face.

He said making decisions about innovation means a lot, hence the need to recognize these challenges and the regulator’s effort.

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