Insurance

Insurers resume sales of annuity amid low patronage

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Chuks Udo Okonta

Life Insurers cleared by the National Pension Commission (PenCom) to sell annuity have resumed sales, amid claims that the patronage for now remains low.

Inspen interacted with some of them yesterday in Lagos at the 12th Retirement Benefits Documentation Seminar organised by the Lagos State Pension Commission (LASPEC) for employees who are due to retire from the State Public Service between July, 2017 and December, 2017.

According to them, since the bar was lifted, sales has being slow. They were though, optimistic that the situation would improve very soon.

They also lauded the decision to safe guide the annuity funds in the coffers of Pension Fund Custodians (PFCs). According to them, the decision will put to rest the perception that annuity funds can erode whenever an insurance company fails.

They said the decision will also help strengthen their marketing and enhance sales, as the public can now buy annuity without fear.

Director-General LASPEC, Mrs Folashade Onanuga, said her commission had begun to sensitised retirees about the lifting of the bar earlier placed on annuity, adding that LASPEC had sent messages to retirees willing to subscribe to annuity to approach the three insurance firms, pending when others meet the requirements set by PenCom.

Recall, PenCom granted approval to FBNInsurance Limited; Leadway Assurance and ARM Life to sell annuity after they met the new requirements for the business.

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