Guidelines for Group life, annuity underway – Naicom

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L- Mr Barineka Thomas, Director Inspectorate, Mr Leo Akah, Director, Corporate Governance & Compliance, Mr Pius Agbola, Assistant Director Compliance at the concluded 2021 National Insurance Commission, Naicom, seminar for insurance Journalists in Lagos

By Favour Nnabugwu

Guidelines for Group life and annuity will soon be released by the National Insurance Commission, Naicom
The guidelines and regulations are expected to serve as a guide for stakeholders to make informed decisions regarding their retirement benefits, address concerns of de-marketing and mis-selling by pension and insurance operators in the country; and ultimately bring clarity and stability to the pension and insurance sectors of the economy
The Commissioner for Insurance, Mr Sunday Thomas who spoke with the 2021 Media st the seminar for insurance Journalists in Lagos informed, “We have continued to have inter-regulatory cooperation with the PENCOM. Jointly we have been able to sign the guideline with respect to enforcement of group life and the enforcement of the annuity guidelines
Naicom and the National Pension Commission (PenCom), jointly agreed to release guidelines and regulations applicable to the pension and insurance sectors: (i) the Revised Regulation on Retiree Life Annuity (RLA); (ii) the Revised Guidelines on Group Life Insurance Policy for Employees; and (iii) the Retiree Pack for retirees under the Contributory Pension Scheme (CPS).

According to the Regulators, these guidelines and regulations were introduced to provide clarity on the provisions of the Pension Reform Act 2014 (the PRA), especially those relating to group life insurance policies for employees and retiree life annuities; as well as ensure safety of retiree life annuity funds and assets..

The Commissioner explained that life annuity was a stream of periodic payments that commences at a specified date, which is either the normal retirement age or at 50 in the case of early retirement.

This payment, he said, could either be monthly or quaterly depending on the retiree’s preference.

The benefits, according to him, include the continuous flow of regular income for the retiree, insulation from the risk associated with the investment of lump sum benefits, structured management of resources and the transference of the risk of diminution in assets and possible failure of investments of retirees to insurance companies which are better equipped to manage such risks.

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