LASPEC tasks PFAs, life insurers on better relationship for market growths
The Lagos State Pension Commission (LASPEC), has appealed to the Pension Fund Administrators (PFAs), and life insurers for better relationship that would build a virile pension industry rather than fighting each other in a bid to retain market leadership.
The Director-General, LASPEC, Folashade Onanuga, who advised at the 2nd National Conference on Insurance and Pension, organised by the National Association of Insurance and Pension (NAIPCO), said the competition between the two operators must be healthy to enhance confidence in the Pension Reform Act (PRA).
According to her, competition between the two operators must be healthy, otherwise the ultimate consumer will lose confidence in the transparency the PRA advocated. “As human, thinking will suggest that the infighting to gain upper market share, between the two operators means that the product being sold is more to the benefit of the operators than the ultimate consumer. The ultimate consumer will therefore be wary of both products.”
While marketing annuity or programmed withdrawal products, Onanuga maintained that PFAs needed to understand that they don’t have a monopoly over the business, but should rather work with annuity service providers to boost the pension industry.
She urged that the National Pension Commission (PenCom), and the PFAs should be able to display the list of annuity service providers on their website while annuity service providers should also be able to display similar list on their website.
“Marketers of both industries need to be sanctioned when they have been accused of de-marketing, whilst sharp practice by any employee aimed at boosting market share should be exposed and appropriate punishment meted out,” she added.
She advised PenCom to organise consultative meetings with the operators under the umbrella of Pension Operators Association of Nigerian (PenOP) as they are pension operators while maintaining their membership of the insurance industry as they also offer other services that do not affect the insurance industry.