Principles-based regulations: a model for legal reform in the Nigerian insurance industry

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Periodical article

Title:	Principles-based regulations: a model for legal reform in the Nigerian insurance industry
Author:	Oyetayo, Yeside
Year:	2015
Periodical:	Journal of African Law (ISSN 1464-3731)
Volume:	59
Issue:	1
Pages:	64-84
Language:	English
Geographic term:	Nigeria
Subjects:	insurance law regulatory agencies
External link:	https://doi.org/10.1017/S0021855315000029
Abstract:	The development of global standards has led to a convergence in domestic regulations in the financial services sectors. Principles-based regulations (PBRs) have become essential for effective regulatory efforts in insurance and other financial services because of their flexibility, support for regulatory efficiency and the development of a good compliance culture amongst the regulated. The legal framework of the Nigerian insurance industry mainly contains prescriptive and performance-based regimes that have become ineffective as regulatory strategies. This article recommends the adoption of PBRs from available models found in international standard setting organizations such as the International Association of Insurance Supervisors, other jurisdictions such as the UK's Prudential Regulation Authority and Financial Conduct Authority, together with international trade regimes such as the General Agreement on Trade in Services. It reviews aspects of Nigerian insurance industry regulations supporting PBRs and highlights laws not supportive of PBRs and therefore requiring reform. Notes, ref., sum. [Journal abstract]