Insurance

Annuity to get huge chunk of N10tn pension assets – NAICOM


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Chuks Udo Okonta

The National insurance commission (NAICOM) has expressed optimism that substantial part of the N10 trillion pension assets will empty into the insurance portfolio.

The Acting Commissioner for Insurance, Sunday Thomas, who expressed the hope, said NAICOM is working assiduously to put in place measures to protect the expected funds.

According to him, this informed the move to raise actuarial analysts who will help measure and manage insurance associated risks.

“Annuity requires day-to-day measurement and management of its activities. As I speak with you right now annuity accounts for about 40 per cent of our portfolio. That actually requires our attention.

“We have also read that contributions into the pension portfolio is in the neighborhood of N9.9 trillion, closed to N10 trillion. So, substantial part of it is supposed to empty itself in the insurance portfolio. How do you manage this if you do not have those who have what it takes to measure and manage the associated risks?”

According to the Nigerian Insurers Association (NIA) life insurers generated N77.93 billion, which is 44 per cent of the total N178.83 billion life business premium from annuity in 2018.

The NIA stated that N61.24 billion was derived from benefits annuity, while N16.14 billion from annuity guarantee.

The association also said 31 per cent of the N94.91 billion total life claims went to annuity amounting to N29.44 billion.

On profit made on annuity, NIA said five firms posted loss, while six posted profit.

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