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NAICOM Tasks Operators To Change Narrative About Insurance Industry

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By Sola Alabadan

The Commissioner for Insurance, Mr. Olorundare Thomas, said the way forward for the Nigerian insurance industry is a move towards changing the narrative and embracing transparency, engagement of all stakeholders, better innovative products, new sources of revenue, improved claims service, use of technology for inclusive insurance, diversification of business base and improved governance.
He gave this charge at this year’s retreat organised by the Nigerian Council of Registered Insurance Brokers (NCRIB) for Chief Executive Officers of the insurance broking firms in Lagos on Thursday.
The NAICOM boss warned that “the impact of unsustainable trends can create significant pressures on the industry’s profitability in the short and long run. They include: inadequate brokerage services to policyholders, poor claims handling service, price based competition among players, lack of innovative products that meet customer’s needs, concentration of operations in few locations, focus on big ticket businesses, as well as poor distribution channels and skills.”
He said the theme for the retreat “Business Strategy for Sustainability – Personal Mastery and Self Leadership” couldn’t have come at a better time than now that we have to look beyond all the challenges we are facing as a sector, economy, nation and the globe.
As CEOs of insurance broking firms, he enjoined the brokers to continually explore ways with other stakeholders to facilitate economic prosperity; ensure environmental sustainability and social development to drive long term sustainable growth in the Nigerian insurance industry for the overall lasting benefits to the society, pertinent to our national and institutional growth.
He also emphasised that the insurance industry as a business is not outside of the same pressures as businesses in other industry or sectors.
“As CEOs, you need to be mindful of the need to entrench a sound “Business Strategy for Sustainability” as many insurance businesse claims, but without a realistic and effective sustainable business strategy. Suffice it to say that such businesses are unlikely to deliver the gains that more sustainable performance could bring through the determination of their activities, behaviour, products, services and a detailed understanding of the environmental and social context in which they operate,” he noted.
He added: “You will agree with me that the imperative for a sound personal mastery and self-leadership cannot be over-emphasised as companies globally are under pressure from multiple stakeholders to adopt sustainable business practices in which the insurance broking arm is not an exception.”
He maintained that “As an arm of the insurance sector, your collective resolve to ensure business sustainability and collective growth and development with other arms of the industry will determine how far we can all go in achieving industry wide stability.”
He reiterated NAICOM’s commitment to continuous development and growth of the Nigerian insurance sector thus, always prepared to collaborate with all stakeholders in promoting and entrenching good business strategies for sustainability of the Nigerian Insurance Industry.
Thomas listed some of the initiatives of the Commission to include: reaching out to the state governments, reaching out to Agencies of government, enhancing its technology infrastructure, as well as binging the Nigerian insurance industry into the mainstream of continental and global relevance.

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Business

PenCom Bars Operators From Engaging Service Providers Not Complying With Pension Act

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By Sola Alabadan

The National Pension Commission (PenCom) has barred all Licensed Pension Fund Operators (LPFOs), comprising Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) from transacting with service providers and vendors that do not remit pensions for their employees as evidenced by a Pension Clearance Certificate issued by the commission.
The pension operators have been given a grace period of six months to comply with this new directive aimed at expanding coverage of the Contributory Pension Scheme (CPS) in Nigeria,
Section 2 of the Pension Reform Act 2014 mandates all employers in the public and private sectors, including Federal, State, and Local Governments, to participate in the Contributory Pension Scheme and remit pension contributions no later than seven working days after salary payments.
However, PenCom lamented that in spite of the continuous engagement and enforcement measures, a significant number of employers remain non-compliant with this legal obligation.
This development made PenCom intensified its regulatory actions by appointing Recovery Agents to audit defaulters, recover outstanding contributions, and enforce sanctions.

To further strengthen enforcement, improve compliance, and broaden pension coverage, the commission directed all pension operators to ensure that any vendor or service provider they engage presents a valid Pension Clearance Certificate (PCC) issued by the Commission as a condition for entering into or renewing Service Level or Technical Agreements.

The pension operators are also mandated to ensure that investments are made only with companies and financial institutions that require PCCs from their own vendors and service providers.

Every Counterparty is required to execute a Compliance Attestation, confirming that it enforces the PCC requirement across its vendor network, and this attestation must be updated annually and included in the pension operator’s investment documentation.

Besides, counterparties are to submit valid PCCs from their own vendors/service providers before engaging in any investment transaction with the pension operators, including those involving commercial papers, bond issuances, and bank placements.

PenCom further directed the pension operators to integrate these requirements into their internal policies, vendor selection processes, due diligence procedures, governance, and investment risk assessment frameworks.

Based on the new directive, the Parent Companies, Subsidiaries, Holding Companies and Institutional Shareholders of pension operators are required to possess valid Pension Clearance Certificate and ensure that every vendor and service provider engaged by them complies with the requirement of the PCC as a precondition for entering into any Service Level or Technical Agreement. The requirement for compliance attestation is also applicable to the categories.

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Business

Sanlam, Allianz Merger Expected In Nigeria

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Sanlam and Allianz have sparked speculation in Nigeria’s insurance industry following a wave of coordinated digital communication activities indicating an imminent completion of the expected merger of the operations in Africa’s largest economy.
The firms, which have already merged operations in 27 African countries, including Ghana and Rwanda, under the SanlamAllianz banner, are now widely believed to be ramping up their alliance in Nigeria as the next significant step in their partnership.
Recent posts on both companies’ digital platforms featuring their logos side-by-side and joint thematic messaging have drawn attention across financial and business circles. The coordinated activity mirrors pre-merger patterns observed in other African markets where their collaboration was subsequently formalised.
In 2022, Sanlam and Allianz announced the formation of a strategic joint venture covering 27 African markets. The move was intended to combine Sanlam’s local market depth with Allianz’s global scale and technical expertise, creating a formidable pan-African financial services entity with ambitions to lead in life and general insurance, asset management, and health insurance.
The partnership has taken concrete shape in countries like Ghana, where existing operations have been unified and rebranded under the SanlamAllianz name. The goal has been to offer more relevant, inclusive, and tech-forward financial solutions for individuals and businesses in these markets.
Nigeria is the continent’s most populous nation and its largest economy, yet despite recent progress, its insurance penetration remains under 1%. In 2023, the industry crossed the ₦1 trillion gross written premium mark for the first time, indicating untapped potential and growing consumer interest in financial protection.
Given these dynamics, analysts say Nigeria is a natural next step in the SanlamAllianz expansion journey. The presence of both logos in coordinated messaging has been read as a signal of intent. Both brands already operate in Nigeria, and a merger of local operations would represent a formidable alliance and substantial consolidation.
Market observers believe such a move could raise the bar in Nigeria’s insurance industry, fostering more robust competition, improved product design, and greater consumer trust in formal financial services. It would also align with both firms’ broader objective of promoting financial inclusion and building long-term resilience across African economies.
At a time when several global brands are reassessing their African strategies, Sanlam and Allianz’s continued commitment affirms their vote of confidence in Nigeria’s long-term prospects. This potential merger could not only reshape the insurance landscape but will also evidently become a significant catalyst and signal to the global investment community that Nigeria remains a viable and valuable market.

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Ghana’s Delegation In Nigeria To Marine Cargo Sector

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Commissioner for Insurance, Olusegun Omosehin received delegates from Ghana's Marine Cargo Technical Committee on a study tour of Nigeria's marine cargo sector at his office in Abuja recently. The delegation was led by Mr. Fred Asiedu-Darteh of Ghana Shippers' Authority.

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