Fear is growing that the annuity payments to annuitants of the defunct Niger Insurance Plc may soon come to an end. According to sources, the Pension Fund Custodian (PFC) managing the annuity fund may soon run out of funds, as there are no new funds being injected into the scheme. This is due to the withdrawal of Niger Insurance’s operating license by the National Insurance Commission (NAICOM) in 2022.
Investigations have revealed that while the number of annuitants is small, the possibility of depleting the fund is high. Industry experts suggest that the best option to sustain the annuity payments is for NAICOM to cede the portfolio to a life insurance company.
NAICOM had previously stated that the annuity fund has been ring-fenced and is being managed by a PFC. However, with no new funds being added, the future of the annuity payments remains uncertain.
The withdrawal of Niger Insurance’s operating license was a result of the company’s failure to reinvent itself, despite given the opportunity to do so by NAICOM. The commission’s former Commissioner, Sunday Thomas, emphasized that the cancellation of licenses is a last resort, taken when companies fail to meet their liabilities to the public.
The situation highlights the importance of effective regulation and risk management in the insurance industry, to protect the interests of policyholders and annuitants.
