The National Insurance Commission is introducing risk-based supervisory framework for insurance companies. 

This means the financial standing of insurance companies and whether they are duly meeting obligations to their clients would be assessed by the commission more than once in a year.

This periodic assessment until now was conducted annually. But the Insurance Commissioner, Lydia Bawa told Joy Business, this will now be carried out on continuous basis.

“Before, we were like the policeman, we go till the end of the year to assess but with the risk based, there's a continuous assessment of the insurance company so we go there either on-site or off-site.

We make sure that the liabilities you have taken on are commensurate with those risks and you're also in the position to meet them. So that continuously we're on the companies so that we put them on their toes to enable them do the right thing.

We don't wait until the end of the year to go and look at their books” she explained.

The exercise is part of moves to ensure insurance companies do not take on more risks than they can support and thereby protect their clients against any unforeseen financial challenges.