African Alliance Insurance Plc has been unable to pay annuitants their pension benefits for the past five months, raising concerns among policyholders. The National Insurance Commission (NAICOM) is currently addressing legacy issues within the company to resolve the problem, though annuitants claim they have not received clear communication on the situation.
Also read:
NAICOM Enforces 10-Year Tenure Limit, Universal Insurance CEO Exits
South African Reserve Bank (SARB) Sanctions Insurance Firm for Non-Compliance
Low Pension and Health Insurance Coverage Among Nigerian Workers Highlighted in NBS Report
One affected annuitant, Gbadebo Olatokunbo, expressed frustration over the delay, stating that African Alliance’s absence from the list of companies that have submitted their accounts to NAICOM adds to the uncertainty. He further noted that the unpaid pensions from May to September 2024 have caused significant hardship for many retirees who depend on these payments.
Insurance expert Koka Peter highlighted that remittance of Retiree Life Annuity (RLA) was halted in 2017 due to concerns over unmet obligations. He explained that life insurers were required to open custody accounts with Pension Funds Custodians (PFCs) to continue underwriting RLA, emphasizing that this line of business is jointly regulated by NAICOM and the National Pension Commission (PenCom).
The ongoing issues with African Alliance could potentially affect other life insurers not currently underwriting RLA.
Source: Inspenonline
