ADDRESS BY THE PRESIDENT OF THE CHARTERED INSURANCE INSTITUTE OF NIGERIA, MRS FUNMI BABINGTON–ASHAYE, DURING THE BREAKFAST SEMINAR HELD AT GOLDEN GATE RESTAURANT, IKOYI ON TUESDAY 19TH JUNE, 2018.
The Guest Speaker, Acting Director General of National Pension Commission, Mrs. Aisha Dahir-Umar.
On behalf of the Governing Council of the Chartered Insurance Institute of Nigeria, we welcome our distinguished Guest Speaker and all participants from the insurance and financial services sector to this Breakfast Seminar which is the second edition this year with the theme: ‘The Role of Insurance and Pension Funds in the Development of infrastructure in Nigeria’.
The National Pensions Commission was established by the Pension Reform Act 2004 as the body to regulate, supervise and ensure the effective administration of Pension matters in Nigeria. The body is charged with the responsibility of establishing standards, rules and guidelines for the management of the pension funds under the Act amongst others.
The Pension industry has close relationship with the Insurance industry in Nigeria. The Commission issued guidelines for Life Insurance Policy for Employees. Section 9 (3) of the Pension Reform Act 2004 requires every employer to which the Act applies to maintain Life Insurance policy in favour of their employees for a minimum of three times the annual total emolument for the employee.
If this is strictly enforced it will lead to growth of group life insurance business in Nigeria. We definitely require the support of the National Pension Commission in enforcing this section of the law, so that the concerned employers comply with the Act.
Even though retirement savings account are managed by Pension Fund Administrators, on retirement, employees have the option of programmed withdrawal or purchasing annuities from life insurance licensed by the National Insurance Commission after receiving a lump sum payment from the PFA. This presents a huge business potential for insurance companies if well harnessed.
Annuity and Pension funds constitute a major source of institutional investments in Nigeria. Such funds, because they are long term in nature can be channeled for development of much needed infrastructure in Nigeria. Such infrastructures include transportation, communication, water and electric systems.
We believe that continuous inter actions with the stakeholders in the Pensions business is necessary so that the huge potentials associated with the business can harnessed and this is one of the objectives for organizing this seminar with the theme: ‘The Role of Insurance and Pension Funds in the Development of infrastructure in Nigeria’.
Once again, I want to thank the Director General of National Pension Commission for agreeing to be the Guest Speaker at this event and welcome all participants to this very rewarding event.
Thank you for your attention.
Mrs. Funmi Babington-Ashaye, FCII, FIIN
President/Chairman of Council
Chartered Insurance Institute of Nigeria