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Chuks Udo Okonta
Less than 70 per cent of Life Companies are currently allowed to even go close to annuity, the Deputy Commissioner for Insurance Technical Dr. Usman Jankara, has said.
He disclosed this yesterday on a Facebook engagement platform – Insurance Practitioners Forum in Nigeria, while speaking on what the National Insurance Commission (NAICOM) is doing to strengthen annuity business, amid prevailing challenges clogging the operations.
He noted that the sing song at the Commission relative to Annuity is now “Never Again…. Err on the side of caution.”.
According to him, to ensure there is no repeat of the “unsavoury experience” NAICOM has done the following.
“We have upscaled the regulatory requirements for Annuity. Not all life companies are currently allowed to transact annuity.
“We have issued additional requirement for Underwriting of Annuity. Which now ensure more robust monitoring of the pricing and ALM of RLAs.
“The Joint Regulation on Annuity is also being reviewed in collaboration with PenCom,'” h submitted.
Jankara said all the companies that are currently doing Annuity have consolidated the funds and kept them with Custodians.
He said NAICOM has placed prohibition orders on companies that have breached regulatory thresholds. Nipping a potential problem in bud and that less than 70 per cent of Life Companies are currently allowed to even go close to Annuity.
On the troubled companies, he said NAICOM’s intervention is yielding results and the commission is hopeful that the issues would be sorted out soon such that the unsavoury experience will soon be a matter of a terrible nightmare, that will lead to positive outcome for annuitants and claimants.
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