Chuks Udo Okonta
Insurance operators and Pension Fund Administrators (PFAs) are seeking ways
to resolve the alleged de-marketing of annuity products by some pension
administrators, Inspen can report.
Executives of Pension Fund Operators Association of Nigeria (PenOp), at a media parley in Lagos, debunked the allegation,
but stressed that efforts will be made to have discussions with underwriters on
the issue.
The Director-General Nigerian Insurers Association (NIA) Sunday Thomas told
Inspen that collaboration between the two industries will be a good way
forward.
He called on insurance operators to fight such allegation through
development of good products that suits the needs of retirees, adding that insurers
and pension operators ought not to fight over annuity and programme withdrawal
as the law has specified the roles to be played by the operators.
He said the menace would have stemmed from the operators' lack of adequate
knowledge of how the two businesses operate, adding that they were designed to complement
each other.
He said: “When we heard of the issue of demarketing between the operators,
I had cause to write to penCom and copied NAICOM. I believe it is due to lack
of adequate knowledge of the subject.
"I happened to be among those who were instrumental to give effect to
the law, when I was with NAICOM. And annuity was not designed to be a conflict
between the institutions. But the problem may probably be due to lack of proper
understanding. The two are supposed to complement each other.
"The role of programme withdrawal is totally different from life
annuity. There was a time the former Director-General of PenCom, was
encouraging insurance companies to come up with products that will attract
retirees and he gave a figure of which out of the total number of retirees, it
was very small number that went by way of life annuity.
"If I a m an operator, demarketing will not bother me too much, all I
need to do come up with good products, that would sufficiently go and endear
itself to the minds of the retirees. I would go ahead and market the products and
engage in public awareness."
He noted that the association would intensify efforts on creating awareness
on annuity and its importance in the life of a worker.
The National Pension Commission (PenCom) has also called on insurers to
intensify efforts in marketing annuity business instead of complaining of
demarketing.
PenCom said the complain by some life insurers that they are denied annuity
business by PFAs is uncalled-for as the Pension Reform Acts
(PRA) 2004, has spelt out the roles to be played life insurers and PFAs
in managing retirement funds.
Life insurers were asked to double their efforts in marketing the retirees
who have been mandated by the pension Act to choose where to invest their
retirement benefits. They were enjoined to stop complaining and reach-out to
the retirees who would not on their own come to them to invest their benefits.
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