IRA asks insurers to cut exposure in properties to settle claims
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IRA’s Director of Supervision, Kalai Musee, noted that while some insurers struggle, many have over-invested in real estate, hindering their ability to meet claim obligations.
The Insurance Regulatory Authority (IRA) is asking insurers to reduce their investment in properties such as land and buildings to improve their liquidity for timely settlement of claims.
It says it is in talks with a number of insurers over their liquidity positions and believes dialling down on property investments in favour of highly liquid assets presents a viable option to manage their cash positions.
