African Alliance Insurance fails to pay annuities and claims for two months, leaving pensioners and subscribers in financial distress. NAICOM summons the company's board to address the crisis.
African Alliance Insurance Plc is facing criticism for failing to pay annuities and claims to pensioners and subscribers for two consecutive months, according to a report by TheCable. The insurance company's inability to meet its financial obligations has left many elderly retirees and policyholders in distress amid Nigeria's challenging economic climate.
Subscribers whose investments have matured and pensioners entitled to annuities for May and June 2024 have not received their payments, despite repeated promises from the company. This has sparked fears among customers about the company's financial stability and potential liquidation.
TheCable visited African Alliance's corporate office in Ikoyi, Lagos, where aggrieved customers had gathered to demand answers. One policyholder, Lilian Nneka, traveled from Anambra to Lagos to pursue her claim of over N500,000, which she needed for her children's school fees following her husband's death.
In response to the situation, the National Insurance Commission (NAICOM) has summoned African Alliance's board to its Abuja headquarters. The regulator has directed the company to address its challenges and settle outstanding claims promptly.
Kelechi Nnamani, African Alliance's head of brand and media communications, assured TheCable that the issues would be resolved within two weeks, stating that board members are working to secure the necessary funds.
The ongoing payment crisis highlights the broader challenges facing Nigeria's insurance sector and the urgent need for improved regulatory oversight to protect policyholders and maintain public trust in financial institutions.
Source: TheCable
