DU JOURNAL OF MANAGEMENT & SOCIAL SCIENCES

• Obinna Chilekezi

  University of the Gambia

  Author

The Nigerian insurance industry has experienced regulatory and structural challenges that demand more effective supervisory approaches. Risk-Based Supervision (RBS) offers a modern regulatory framework focused on identifying and mitigating risks to ensure industry stability and sustainable growth. The main objective of this study is to examine the expected role that the implementation of risk-based supervision would have in impacting the growth of insurance operators in Nigeria, thereby enhancing the stability of the industry. A quantitative research design was employed. Data were collected using structured questionnaires administered to employees across six purposively selected insurance companies located on Lagos Island, Lagos State. Out of 300 distributed questionnaires, 189 were valid and analyzed. The study utilized descriptive statistics, Chi-Square Goodness of Fit tests, and simple regression analysis using the Statistical Package for the Social Sciences (SPSS). The results of the first hypothesis showed that a statistically significant majority of respondents agree that risk-based supervision is needed in the Nigerian insurance industry. The second hypothesis revealed that most respondents believe RBS would enhance industry growth. The third hypothesis demonstrated a strong, positive, and statistically significant relationship between the adoption of RBS and the growth of insurance operators. The study concludes that implementing risk-based supervision is essential for strengthening regulatory oversight and enhancing the sustainable growth of insurance firms in Nigeria. It is recommended that Nigeria’s insurance regulatory bodies, particularly NAICOM, institutionalize RBS as a standard supervisory practice. Capacity-building programs should also be implemented to support insurance companies in aligning their operations with RBS principles, ensuring long-term industry resilience and competitiveness

1. Obinna Chilekezi, University of the Gambia

   Department of Management Science, School of Business and Public Administration

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