NAICOM issues additional guidelines for annuity business
The National Insurance Commission (NAICOM) has issued additional regulatory requirements for life insurance companies carrying on annuity business in the country.
An annuity is a form of insurance or investment entitling the investor to a series of annual sums.
A circular by the commission in Abuja on Friday said insurance companies would be required to have at least one qualified actuary responsible for their Assets-Liability Matching (ALM) analysis and implementation.
The commission said insurance companies would be required to submit their ALM reports quarterly.
NAICOM said the reports would be submitted with requirements outlined in the circular, such as required actions by insurers depending on the results from specific analysis applying guidance provided in the Standards of Actuarial Practice (NSAP).
The commission said insurance companies that were unable to cover the additional expenses imposed by the circular would be required to transfer their annuity portfolio to another suitable insurance company within 180 days.
NAICOM said the circular would take effect from February 1.
According to NAICOM, insurance companies are expected to comply with the new requirements to ensure a stable and secure annuity business in the country.
”Insurance companies are required to comply with the new requirements, with the board of directors responsible for ensuring strict compliance.
”The circular aims to enshrine best practices in the management of annuity portfolios by insurance institutions in furtherance to ensuring a safe, sound, and stable insurance
sector,” it said.
(NAN)
We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.
More from Peoples Gazette
Agriculture
FG tasks ECOWAS on leveraging financing strategies for agroecology
The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices
Politics
Katsina youths pledge to deliver over 2 million votes to Atiku
“Katsina State is Atiku’s political base because it is his second home.”
States
Navy uncovers 22,870 litres of illegal diesel in Rivers operation
Mr Folorunsho said the operation denied criminals the use of the intercepted wooden boat for transporting illicit petroleum products.
Heading 1
Unresolved Demands: Resident doctors issue fresh four-week ultimatum to FG
The NARD warned that it could no longer guarantee industrial harmony beyond the additional four-week period if the government failed to address the outstanding concerns.
States
Police arrest seven suspected armed robbers in Katsina, hunt fleeing accomplices
The state Police Public Relations Officer, DSP Abubakar Sadiq-Aliyu, disclosed this in a statement on Sunday in Katsina.
States
Police begin probe as parents allegedly beat Kogi teacher to death for disciplining pupil
The spokesperson stated that the suspects fled before police officers arrived at the scene.
Heading 1
NDC Deregistration: Tinubu govt looking for flimsy excuses to weaken, destabilise opposition, says Dickson
Mr Dickson argued that symbols were not enough to deregister a political party.
Hot news Home top
Sultan demands transparent probe into killing of Benue MACBAN chairman
The traditional ruler noted that the deceased’s commitment to dialogue and conflict resolution earned him the respect of people across communities.
