The Insurance and
According to the short term (non-life) insurance report for the quarter ended
IPEC added that only six non-life insurers out of 25 had investments in prescribed assets while the industry average prescribed asset ratio remained largely unchanged at 0,50 percent.
"All insurers are encouraged to make efforts to comply with the prescribed assets ratio, failure of which the Commission will take necessary regulatory action," IPEC said.
Meanwhile, the industry average ratio of premium debtors to total assets deteriorated marginally from 23,83 percent as at
High premium debtors to total asset ratios compromise asset quality of an insurer, as well as its liquidity and solvency.
The non-life insurers, however, reported an improvement in premium collection rate as evidenced by the decrease in premium debtors to gross premium from 69,57 percent for the quarter ended
"However, some insurers were yet to receive premium for business written during the year ended
IPEC said there were no significant changes in the risk appetite for short term underwriters as evidenced by negligible changes in industry average retention ratios with direct underwriters reporting an average retention ratio of 50,30 percent during the quarter under review.
The development comes amid revelations that only 12 out of 25 operating insurance companies have complied with the minimum capital requirement of
According to IPEC the 13 non-compliant insurers reported capital levels ranging from
"The average capital maintenance ratio for the 13 insurers was 73,76 percent as at
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