The National Insurance Commission (NAICOM) is set to release supplementary regulatory guidelines aimed at strengthening protection for Retiree Life Annuity (RLA) funds and enhancing the cybersecurity resilience of the Nigerian insurance sector. This move comes amid rising concerns over annuity defaults and the growing threat of cyberattacks on financial institutions.
Disclosing the development after the June 2025 Insurers’ Committee meeting in Lagos, Vice Chairman of the Publicity Sub-Committee and Managing Director of NSIA Insurance, Mr. Moruf Apampa, emphasized that the new regulations are designed to reinforce trust and ensure that pensioners continue to receive their monthly allowances without disruptions.
“NAICOM is coming up with additional guidelines to ensure that annuitants are actually protected,” Apampa said. “The commission is taking proactive measures to ensure that no company goes under, or annuitants are not paid their normal monthly allowance. These guidelines will be released soon.”
Retiree Life Annuities are long-term contracts between insurance companies and pensioners, designed to provide guaranteed income post-retirement. However, rising inflationary pressures, volatile financial markets, and cases of underperformance by some insurers have prompted NAICOM to act.
Apampa stated that the supplementary annuity guidelines will include new capital protection mechanisms, enhanced internal controls, and better oversight over fund management strategies. These regulations are expected to reduce the risk of default and rebuild policyholder confidence, especially among Nigeria’s growing retiree population.
“NAICOM has brought out a supplementary guideline on the business of annuity to build further confidence in the market,” he added.
Beyond annuities, NAICOM is also responding to the increasing frequency and sophistication of cyber threats. With the insurance industry undergoing digital transformation — from online policy subscriptions to claim processing and fund disbursements — cybersecurity has become a critical concern.
According to Apampa, the new cyber risk guidelines under development will provide a framework for insurers to strengthen their digital defenses, mitigate data breaches, and comply with global cybersecurity standards. These policies will likely address areas such as cloud security, customer data protection, risk disclosure, and incident response protocols.
“With digital transactions becoming increasingly vital, NAICOM is preparing cyber risk guidelines to bolster the industry’s resilience against cyber threats,” Apampa noted.
Stakeholders in the insurance sector have welcomed the development, noting that such guidelines are essential in an era of financial uncertainty and digital exposure. The insurance penetration rate in Nigeria remains low, and many experts believe that stricter regulations, backed by transparency and risk protection, could help boost public confidence.
In recent years, NAICOM has been actively pushing reforms aimed at improving regulatory compliance, encouraging insurance adoption, and supporting capital adequacy among underwriters. The upcoming guidelines are seen as another step in safeguarding the long-term sustainability of the sector.
As Nigeria’s financial ecosystem continues to evolve, NAICOM’s latest regulatory initiatives underscore the need for robust and forward-looking policies. The proposed guidelines on annuity protection and cyber risk management are expected to shape the future of insurance governance in the country, ensuring retirees are protected while fortifying the industry against digital threats.