NIIRA 2025: Why NAICOM should license specialised non-claims paying deferred annuity companies
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Chuks Udo Okonta
As the insurance industry brainstorms on how to turn the Nigerian Insurance Industry Reform Act (NIIRA) 2025 to Naira for all stakeholders, rapt attention should be paid on integrating the over 60 million informal sector workers into the insurance saving platforms, which the deferred annuity provides a haven of opportunities.
The integration of these Nigerians in deferred annuity, properly aligns with the nation’s financial inclusion strategy.
Though life insurance companies over the years have been offering services in the deferred annuity space, they have not been able to break the deal, as they have being scratching the surface with little impact.
To effectively maximize the haven of opportunities inherent in the deferred annuity business, it is time the National Insurance Commission (NAICOM) open up the space for establishment of specialised deferred annuity companies that would be laser focused on the business.
The licensing of specialised deferred annuity companies would help harness the numerous unbanked funds in the hands of the public and channeled the funds into securing a better future for them, especially at old age.
The establishment of non-claims paying insurance firms would help in stemming the alleged claims stereotype that has been a bane of the industry.
Benefits
*Financial inclusion
*Deepened insurance penetration
*Increased insurance fund
*Create job opportunities
*Revenue for regulator
*Creation of robust alternative retirement savings platform
