To enhance the capacity of local insurance companies to be able to manage risk businesses in the country, the National Insurance Commission (NIACOM) has disclosed that the current recapitalization will be useful in that effect.
Speaking at the industry gathering at Ijebu Ode, the Acting Commissioner for Insurance, Sunday Thomas, disclosed that the aim of NIACOM is to ensure that industry is highly liquid, with solid assets, which will, in the long run, heighten its quota to the nation’s Gross Domestic Product (GDP).
Thomas who is of the opinion that the insurance sector would be better off post-recapitalisation said that the whole procedure will limit foreign influence on Nigeria’s risk market.“The whole idea of the recapitalization exercise is to have an industry that is strong; diligent in prosecution of its assignments; highly liquid in terms of claims settlement, and solid in terms of assets and visible in terms of retaining business within our environment,” he said.
He assured that NAICOM will continue to do everything to improve the contribution of insurance to the growth and development of the nation’s economy. “The work ahead may be more active than envisaged because of the many grounds to be covered”, he stressed.
According to Thomas, the process was about revamping the balance sheet of the insurance companies so that they can be effective to clients.
However, he pleaded the support and cooperation of insurance operators, development partners, shareholders and other government regulators to grow the insurance sector.