Regulator moves to tackle unpaid annuity claims amid growing complaints

There are indications that the National Insurance Commission (NAICOM) has moved to address the challenges of the N323 billion annuities business in the country, including unpaid claims.

The ongoing move by both regulators is to address some of the challenges of the annuity business and empower insurance agents to sell annuity products.

No fewer than five life insurance companies have cut down on their annuity business portfolios as inflation and low returns on investment continue to hit the bottom lines of the insurance operators.

While three of the concerned firms have suspended annuity business, for now, two of them have reduced their business volumes as profit from this business portfolio dips.

One of the affected annuitants, Taiwo Adeyemi, at the weekend, shared his experience with The Guardian, saying that the last time he received monthly benefits was April and that efforts to find out the reason for the default in payment from the new management of African Alliance Insurance Plc proved abortive.

Following increased complaints by annuitants and insurance claimants against African Alliance in respect of the company’s delay and/or inability to fulfill its obligations, the NAICOM has given a marching order to the company to resolve and ensure the settlement of outstanding claims.

NAICOM summoned the board of the African Alliance to its headquarters in Abuja and ordered the company to settle outstanding payments due to annuitants and claimants.

In addition, the board of directors of the company was also directed to immediately submit a turnaround plan for addressing the challenges currently faced by the company.

But annuitants have expressed worries that despite the directive by NAICOM, they have continued to wait endlessly for payment.