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NAICOM Boss Urges Operators to Strategise for Effective Management of N14tn Annuity Premium
Mr. Sunday Thomas, the commissioner for Insurance, has charged insurance industry operators to strategies on how best to effectively manage the existing N14 trillion pension assets, which will through life annuity plan be transferred to insurers as annuity premium by pension fund operators.
Thomas, who stated this in Lagos during a visit to Mutual Benefit Assurance Plc retail office, said time has come for insurance to take its rightful place in the scheme of things in the economy.
He charged insurance operators to brace up to the challenge of effective management of stream of premium that will flow into the industry especially through annuity plan as stated by the law.
The Pension Reform Act 2014, which established the on-going Contributory Pension Scheme (CPS) says that at retirement, a contributor into the scheme is at liberty to continue receiving the remaining part of his contributed fund after the initial lump sum pay on monthly basis from his Pension Fund Administrator (PFA) under programme withdrawal for 18 years or purchase life annuity from a licensed life insurance company to whom the retiree’s pension fund manager transfers the fund to and who takes over payment of Benefit to him for life.
Initially, contributors into CPS were confused on the choice to make between annuity plan and programme withdrawal but with time, majority now prefer buying life annuity which has the advantage of paying benefits to them for life instead of 18 years.
This means that the pension assets belonging to this greater number of contributors will automatically be transferred to life insurers as annuity fund.
Speaking to the retail insurance marketers and management of Mutual Benefit Assurance Plc, he said insurance business in Nigeria is no longer business as usual and that days were gone when insurance was described as poor cousin of the bank.
He said even before now, the above statement was misconception of what insurance does pointing out that most of the assets used today in Abuja was insurance fund.
“Before now, insurance was owned by banks but now it is not like that. Insurance firms own some banks and more banks will be taken over by insurance firms. Even some of the monumental assets in Abuja is owned by insurance industry look at Nicon Hilton, Sheraton Hotel, all were built with insurance funds. Abuja itself was built by insurance money and without insurance, Abuja wouldn’t have come to be,” Thomas stated.
The insurance commissioner said the N14 trillion pension fund will be emptied into insurance treasury as annuity fund to be managed by insurers adding that insurance managers have been assigned the responsibility of managing the fund by the regulation that established the prevailing Contributory Pension Scheme.
He said this is in addition to the existing N500 billion annual premium income in their coffers.
Section 4, subsection one of insurance Act 2014 on contributors’ retirement benefits says “A holder of a retirement savings account upon retirement or attaining the age of 50 years, whichever is later, shall utilise the balance standing to the credit of his retirement savings account for the following benefits-
“programmed monthly or quarterly withdrawals calculated on the basis of an expected life span; annuity for life purchased from a life insurance company licensed by the National Insurance Commission with monthly or quarterly payments; and a lump sum from the balance standing to the credit of his retirement savings account, Provided that the amount left after that lump sum withdrawal shall be sufficient to procure an annuity or fund programmed withdrawals that will produce an amount not less than 50 percent of his annual remuneration as at the date of his retirement.”
Initially, insurance and pension fund managers had clash over sale and management of the annuity fund but later came up with a document they tagged Revised Regulation on Retiree Life Annuity Pursuant to the Pension Reform Act 2014 Jointly Issued by the National Insurance Commission and National Pension Commission (NAICOM).
News
Firms Seek Specialized Expertise to Combat AI Cyber Threats – Study Reveals
As concerns about the use of AI in cyberattacks increase, companies worldwide are racing to bolster their cybersecurity strategies, according to a Kaspersky survey.
In a new study the cybersecurity company revealed that 92% of IT and Information Security professionals surveyed in the Middle East, Turkiye and Africa (META) region expect the use of AI by malicious actors to escalate over the next two years.
This growing threat is prompting organisations to prioritise cyber defense expertise, with many turning to cybersecurity vendors for specialised support and training.
In its latest study titled “Cyber defense & AI: Are you ready to protect your organisation?” Kaspersky gathered insights from IT and Information Security professionals across SMEs and large enterprises. The findings underscore the urgent need to prepare for AI-driven cyberattacks.
To combat these evolving threats, companies place high value on cybersecurity expertise, with 94% of respondents in the META region highlighting the importance of growing internal expertise through training for in-house employees, and 93% underscoring the need for external expertise provided by cybersecurity vendors. This need spans sectors from retail to critical infrastructure, emphasising a universal demand for advanced threat protection.
To reinforce their cyber protection, organisations are actively integrating both internal and external expertise. Currently, 36% of companies surveyed in the META region are either implementing or planning to deploy external support to adapt to the evolving threat landscape, while 34% are doing the same through internal training initiatives. Additionally, 61% already use external cybersecurity expertise, and 62% have training programs in place, underscoring a dual approach in fortifying their protection.
Cybersecurity vendors’ expertise can come in various forms, from specialised professional services that help organisations deploy their protection solutions, to advanced expert centers that focus on specific security challenges.
One of these centers is the Kaspersky AI Technology Research Center. It brings together the company’s AI research and development efforts, to deepen the protective capabilities of cybersecurity solutions.
Vladislav Tushkanov, Group Manager at the Kaspersky AI Technology Research Center, says: “Our latest survey shows that businesses are acutely aware of the rising threat from AI-driven cyberattacks and are looking to reinforce their protection through comprehensive solutions, including the use of vendors’ extensive cybersecurity expertise.
The Kaspersky AI Technology Research Center plays a pivotal role by helping us leverage AI advancements to enhance our threat protection strategies and explore innovative ways of using AI in cybersecurity. It also enables us to address security concerns specific to AI itself, ensuring that businesses are prepared for the latest AI-driven threats.”
News
EFCC Dismantles Fake Hotel Review Syndicate, Arrests 105 in Crackdown
Economic and Financial Crimes Commission (EFCC) has dismantled a fake hotel review syndicate and arrested four Chinese nationals and 101 Nigerians for their roles in the elaborate internet fraud scheme.
Victims were allegedly first lured into rating hotels in exchange for small sums of money.
Eventually they would be encouraged to make bookings in any of the rated hotels for as much as $500.
They were told that the company would pay them back with chunky interest into a crypto wallet bearing their names.
However, the victims would in the end not be able to open the wallet.
EFCC announced that the suspects operated out of Naka Hall Plaza on Abutu Garba Street in Gudu, Abuja, where agents recovered 100 compact workstations.
Dele Oyewale, spokesman, EFCC, said the suspects used fake foreign identities to target unsuspecting victims, primarily U.K. residents.
Authorities said the criminal network was allegedly led by the Chinese nationals, who recruited and trained Nigerian youths with advanced technical skills to act as customer service representatives.
These representatives followed a predesigned script to deceive their victims online.
The operation follows a separate crackdown weeks earlier, in which 792 suspects — including 148 Chinese nationals — were arrested for involvement in cryptocurrency and romance scams.
The foreign nationals allegedly used corporate apartments disguised as business centers to train their Nigerian accomplices. These accomplices were reportedly taught to initiate romance and investment scams and use their own identities to carry out fraudulent activities.
The EFCC also highlighted a concerning trend of foreign nationals instructing Nigerians in internet-related crimes.
News
AfDB to Partner LAMATA to Expand Existing Rail System
The African Development Bank (AfDB), has disclosed plans to work with the Lagos Metropolitan Area Transport Authority (LAMATA), to boost the state’s transport system with the development of another rail line.
This was contained in a statement signed by, the Head, Corporate Communication, LAMATA, Mr. Kolawole Ojelabi in Lagos.
Ojelabi said that the AfDB Vice President, Private Sector Infrastructure and Industrialisation, Mr. Solomon Quaynor, gave the assurance during a visit to LAMATA.
He added that the bank was interested in partnering LAMATA to expand the capacity of the existing rail system.
“Quaynor was also in the company of the Non-Sovereign Operations and Private Sector Equity Specialist, Mr Mayowa Ayodele ahead of a visit of the technical team to assess the Purple line,” he said.
The Purple Line is a 60-kilometre railroad along the Redemption Camp in Ogun State, traversing Berger, Agege and Alimosho and terminate at Volkswagen to join the Blue Line.
“The visit follows a recent pitch for investment on 60-kilometre Lagos Rail Mass Transit (LRMT) Purple Line at the African Development Bank forum in Morocco, where the Lagos delegation was led by Governor Babajide Sanwo-Olu.
“This is to further discuss collaboration on the project and other lines outlined in the Lagos Strategic Transport Master Plan. The delegation toured the LRMT Blue Line and expressed satisfaction with the progress of the Blue Line rail system,” he said.
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