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As part of efforts to enhance insurers benefit from annuity business which is currently having issues of return on investment as a result of drop-in interest rates and restrictions on some investable financial securities, the National Insurance Commission (NAICOM), has cautioned that operators without in-house actuaries would soon be denied the opportunity to underwrite annuity businesses.
The Acting Commissioner of Insurance, Sunday Thomas, who said this at the Chartered Insurance Institute of Nigeria (CIIN) 2020 Business Outlook, in Lagos, revealed that the Commission has taken steps to produce about 100 actuaries in the next five years. Stressing the importance of actuarial analysts to insurance businesses, he noted that the industry would soon get to the point where firms operating without in-house actuaries will be disqualified from operating annuity business.
According to him, only a few insurance companies have in-house actuaries, which is why the Commission stepped in to stem the tide.
He explained that due to the technical nature of annuity business, it has become imperative that experts with analytical minds like actuaries should be involved.
“Part of our plans is that within the next five years, we want to produce at least 100 Certified Actuarial Analysts and we will take responsibility for the commitment.
“We must analyse our job, role and the need to change focus on how to develop the market, and ensure compliance to regulatory policies.
“Part of the development is human capital development, as the growth potential of the industry is built on the capacity to have the required capital that will drive it forward. The issue of measuring and taking the necessary step for effective pricing has made the actuarial profession more pertinent than ever before.
“There is a need to develop young professionals and give them a future in the insurance industry, and we are determined to develop their potential and make them relevant to the sector,” he said.
