The National Insurance Commission, NAICOM, said it will undertake a verification of the capital resources of all insurance companies in the first quarter of 2017. In a circular issued to all insurance companies, NAICOM said the move was to ensure protection of policy holders and beneficiaries of insurance contracts against unexpected losses.
The regulatory body also said that the move became necessary because since the last recapitalisation exercise in 2007, the business environment and the risk profile of all insurance institutions have changed.
NAICOM said, “It will entail a verification of the assets and liabilities of all insurance companies. In preparation for this, Boards are advised to ensure fairness in valuation of assets and liabilities of their companies when presenting the financial statements for the year ending December 31, 2016. “