By LOVETH AZODO, Lagos
The National Insurance Commission (NAICOM) has introduced additional regulatory measures for annuity business in Nigeria.
This move is coming just months after the dissolution of African Alliance Insurance’s Board and Management over prolonged insolvency and failure to meet contractual obligations to policyholders and annuitants.
The new requirements, outlined in a circular dated January 24, 2025, are designed to strengthen annuity portfolio management and safeguard annuitants, ensuring the industry does not experience similar challenges in the future.
The circular mandates that insurance companies must have at least one qualified actuary responsible for Assets-Liability Matching (ALM) analysis and implementation. It also requires insurers to submit quarterly ALM reports to NAICOM, detailing specific actions to be taken based on the analysis in line with the NAS Standards of Actuarial Practice (NSAP).
Furthermore, the Board of Directors of each company is now responsible for ensuring strict compliance with the new regulations. Insurers that are unable to meet these additional requirements must transfer their annuity portfolios to a suitable insurance company within 180 days.
The new regulations take effect on February 1, 2025, and NAICOM has urged all affected insurance companies to comply to maintain stability and consumer confidence in the annuity sector. For further inquiries, stakeholders can contact the Commission via email at mailroom@naicom.gov.ng or visit its office at Plot 1239, Ladoke Akintola Boulevard, Garki II, Abuja.
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