The Commissioner for Insurance, Sunday Thomas has revealed that it is ensuring that defaulting insurance companies pay all their outstanding claims.
Thomas went on to state that some of the defaulting insurance companies with huge liabilities are unable to meet up with their claims obligations hence they put up their assets for sale to comply with NAICOM’s order to pay their claims.
He stated that the commission was not keen on closing the defaulting companies because they still had the potential to pay all their claims.
Thomas further spoke on one of the companies with huge liabilities, saying, “The assets are enough to cover its liabilities but the structure of the assets is where the issues are.
“Most of their assets are in properties. We are also aware that some of the properties have been put on sale for the past two years, because we asked them to go and settle these claims. The properties are up for sale but the buyers are not forthcoming.
“However, this is why we are insisting that companies must bring cash into the company and not just come and say you have recapitalised.
“After the recapitalisation, can you meet your obligations? These were some of the things that we were looking. A couple of claims have been paid by these companies.”