NAICOM Releases Additional Requirements for Annuity Business
The National Insurance Commission (the Commission) has released a circular outlining additional
regulatory requirements for life insurance companies carrying on annuity business in Nigeria.
The circular, dated January 24, 2025, aims to enshrine best practice in the management of annuity
portfolios by insurance institutions in furtherance to ensuring a safe, sound, and stable insurance
sector.
Some key requirements of the circular include:
a. Qualified Actuary: Insurance companies are required to have at least one qualified actuary
responsible for Assets-Liability Matching (ALM) analysis and implementation.
b. ALM Reports: Companies are required to submit ALM reports to the Commission quarterly,
with requirements outlined in the circular such as required actions by insurers depending on
the results from specific analysis applying guidance provided in the NAS Standards of
Actuarial Practice (NSAP).
c. Regulatory Compliance: Insurance companies are required to comply with the new
requirements, with the Board of Directors responsible for ensuring strict compliance.
d. Transfer of Annuity Portfolio: Companies that are unable to cover the additional expenses
imposed by the circular are required to transfer their annuity portfolio to another suitable
insurance company within 180 days.
e. Effective Date: The circular takes effect on February 1, 2025. Insurance companies are
expected to comply with the new requirements to ensure a stable and secure annuity
business in Nigeria.
For more information, please contact the Commission via email: mailroom@naicom,gov.ng or
visit our office at Plot 1239, Ladoke Akintola Boulevard, Garki II, Abuja.
Leave a Reply