Insurers target untapped annuity market

Insurers target untapped annuity market

Chuks Udo Okonta

The annuity market is yet to be tapped, and operators are making frantic efforts to penetrate into it the Managing Director CrystaLife Assurance Plc Mrs Oluseyi Ifaturoti, has said.

She told Inspen that operators have been looking for opportunities to meet with prospective clients in that area. She noted that annuity which provides succour for retirees has been a haven of opportunities since the emergence of the new pension scheme.

She noted that most operators have been building their capacity to enable them maximise the potentials in the market.

According to National Pension Commission (PenCom) which is regulator of annuity, the activities in the market picked have up, adding that it has received a total of 74 requests for annuity retirement plan and they were approved.

“It should be noted that the annuity market is relatively new in Nigeria as the regulation on annuities was finalized and released by PenCom in collaboration with the National Insurance Commission (NAICOM) in December, 2009, after the consolidation exercise in the insurance industry. This accounted for the late commencement of purchase of annuity by retirees as another method of collecting regular periodic payments of pensions,” PenCom said.

PenCom noted that in collaboration with National Insurance Commission (NAICOM) 26 Life Insurance Companies have been endorsed to carry out annuity business in Nigeria.