Over 1,600 retirees adopt life annuity in Q1 2021

As the campaign for life assurance for retirees thicken, Life Insurance companies has registered over 1,601 retirees under the Retiree Life Annuity (RLA) as at the during the first quarter of 2021,

The revelation was made by the National Pension Commission (PenCom) in its first quarter 2012 report, adding that a total lump sum of N5.436 billion was approved for payment to the retirees, while the sum of N10,106 billion was approved for payment to 14 Retiree Life Providers as premium in return for total monthly/quarterly annuities of N98,330

PenCom also stated that it granted approval for 8,947 requests, comprising 4,173 public (FGN & States) and 4,774 private sector retirees to draw pension through the Programmed Withdrawal (PW) mode during the quarter under review. These retirees, it noted received a total lump sum of N25,160,612,257.42 while their total monthly pension amounted to N371,103,549.16.

Recalled that the National Insurance Commission (NAICOM) has expressed great concern over the declining participation of life companies in Retiree Life Annuity business, which is considered as huge emerging opportunity for the industry.

Retiree Life Annuity is pension benefit administered by life insurance companies, which provides pension benefits for retiree all through their lifespan and estimated to have pool of fund over N463.10 billion.

The Commissioner for Insurance, Sunday Thomas, who raised the concern, noted that operators in the insurance industry must strengthen their human and financial capital for effective participation in big ticket risks.

“It has been observed that the gains of domestication policy of the government as enshrine in the Nigeria Content Development Act 2010 is gradually loosing its meaning for the insurance sector. More businesses especially in the oil and gas and the Aviation sectors are now been re insured abroad.

“Of more concern is the declining participation of life companies in the annuity business which is the emerging business for our industry. These are the areas where the industry can impose itself on the economy through the control of funds for national development,” he posited.