The National Insurance Commission (NAICOM) said it has rolled out three-year strategic reforms (2021-2023) that will see the transformation of the insurance sector.
The commission said the starting point of the reform was to return operating firms to liquidity status by ensuring that they restructure their balance sheets so that those that currently rely on assets that they can hardly turn to cash would effect a major turnaround in their operations and run their business based on cash flow instead of fixed assets.
The commission said it has already started this through expertise advice on owners of various insurance firms who have in the past exceeded the maximum level of investment in real estate and are now facing cash crunch and could not easily turn their assets to cash to keep afloat in business. It further said it is strictly guiding operators to ensure that going forward none exceeds the 25 per cent maximum investment in real estate sector.
NAICOM Director of Supervision, Mr. Thompson Barineka, who spoke on behalf of the Commissioner for Insurance, Mr. Sunday Thompson, at a media retreat organised by the regulator in Lagos, revealed these.