The call for NAICOM’s intervention comes amid mounting frustration from annuitants who have not received their monthly pension benefits for several months. These retirees, along with other policyholders, expressed their dissatisfaction in response to a recent report titled NAICOM Takes Tough Position on Prompt Claims Payment. The policyholders are demanding that the insurance regulator move beyond rhetoric and take concrete steps to address the African Alliance Insurance issue.
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Concerned policyholders of African Alliance Insurance Plc are urging the National Insurance Commission (NAICOM) to take over the management of the company due to its ongoing challenges in meeting pension and insurance claims. These stakeholders argue that decisive action from NAICOM is necessary to restore public confidence and preserve the credibility of the entire insurance sector.
One concerned policyholder emphasized that the situation is affecting not only African Alliance Insurance but the wider industry, as the public’s trust in insurance products—especially annuities—continues to erode. “They are damaging the annuity business as a whole,” the policyholder said. “Even insurance professionals like myself are now hesitant to opt for retiree life annuities or recommend them to others.”
The stakeholders are calling on NAICOM to take swift action, as it did in the cases of Niger Insurance and Standard Alliance Insurance, whose operational licenses were revoked after prolonged financial troubles. However, the policyholders hope to avoid the same outcome, which led to legal battles and prolonged hardship for claimants.
In light of the ongoing struggles, some annuitants are urging NAICOM to release funds from the company’s statutory reserves, held at the Central Bank of Nigeria (CBN), to settle outstanding payments. In July 2024, NAICOM summoned the Board of African Alliance Insurance Plc to discuss the company’s financial position, instructing them to settle all unpaid claims and pensions. The regulator also required the board to submit a turnaround plan to address the company’s challenges, placing African Alliance under regulatory supervision.
NAICOM reaffirmed its commitment to ensuring the fair treatment of policyholders and maintaining professionalism within the industry. It warned that further action would be taken if African Alliance Insurance fails to meet the obligations outlined in the regulatory order.
Source: Inspensionline
