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The National Insurance Commission (NAICOM) has taken decisive action to address the ongoing challenges in Nigeria’s N323 billion annuities market, particularly concerning unpaid claims.
NAICOM’s recent efforts are focused on resolving these issues and empowering insurance agents to effectively sell annuity products. This comes as the sector faces significant hurdles, with no fewer than five life insurance companies scaling back their annuity business portfolios due to inflation and declining returns on investment, which have adversely affected their bottom lines.
Among the affected firms, three have temporarily suspended their annuity business operations, while two others have significantly reduced their business volumes, citing a decrease in profitability from this portfolio.
Taiwo Adeyemi, one of the impacted annuitants, shared his ordeal with The Guardian over the weekend. He revealed that the last time he received his monthly benefits was in April, and all efforts to resolve the payment issues with the new management of African Alliance Insurance Plc have been unsuccessful.
In response to the growing number of complaints from annuitants and insurance claimants regarding African Alliance’s delays and failure to meet its obligations, NAICOM has issued a directive to the company to promptly resolve and settle all outstanding claims.
NAICOM summoned the board of African Alliance to its headquarters in Abuja, where they were instructed to ensure immediate payment of outstanding dues to annuitants and claimants. Additionally, the board was mandated to submit a comprehensive turnaround plan to address the ongoing challenges within the company.
Despite NAICOM’s intervention, many annuitants remain concerned, as they continue to wait for their overdue payments, with no resolution in sight.
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