By David Akinmola, Lagos
There are indications that the National Insurance Commission (NAICOM) and National Pension Commission (PenCom) are planning to address the challenges of the N323 billion annuities business in the country,
The ongoing move by both regulators is to address some of the challenges of the annuity business and empower insurance agents to sell benefit annuity products.
In the industry, no fewer than five life insurance companies have cut down on their annuity business portfolio as volatility, inflationary pressure, and low returns on investment; continue to hit the bottom line of the insurance operators.
While three of the concerned Firms have suspended annuity business, for now, two of them have reduced their annuity business volume as Profit from this business portfolio dips.
One of the affected annuitants, who shared his complaint with The Orimixtimes, about one of the operators said that the last time he received monthly was April this year, and efforts to find out the reason why from their new management in their office at Awolowo Rd, Ikoyi so far proved abortive.
According to him, we informed NAICOM who called them and directed them to effect payment from Friday last week was not forthcoming.
He noted that annuitants with African Alliance Insurance Plc are presently passing through difficult times as they have remained unpaid for three months amid the tough economic situation.
He implored NAICOM and PenCom to intensify efforts to ensure that their plights are addressed.
According to him, annuitants have been warning up for the protest, stating that all efforts made by annuitants to ensure the company lives up to its responsibilities have yielded little or no results.
Following increased complaints by annuitants and insurance claimants against African Alliance Insurance Plc in respect of the company’s delay and/or inability to fulfill its obligations, the National Insurance Commission (NAICOM) gave marching orders to the company to resolve and ensure settlement of outstanding claims.
NAICOM summoned the Board of African Alliance Insurance Plc to its headquarters in Abuja and ordered the company to settle outstanding payments due to annuitants and claimants. In addition, the Board of Directors of the company was directed to immediately submit a turnaround plan for addressing the challenges currently faced by the company which necessitated putting the company under the Commission’s Regulatory Order. Given the heightened challenges, the company should expect further actions if it fails to address the issues within the timeline the company has been given.
The Board assured the Commission that they would act on all the resolutions reached at the meeting.
The Commission wishes to restate its determination to ensure fair treatment of all stakeholders and enforce professionalism and good conduct amongst its licensed operators.
Annuitants expressed worries that months after the mandate by NAICOM to the firm there is no improvement, as they have continued to wait for payment of their benefits.
