Why I Am Passionate About Annuity Insurance, Retirement Benefits -Oyekola Taiwo

IN THIS INTERVIEW WITH CAMI EZENWA & ENIOLA JOLAOSO, Oyekola Taiwo provides professional insights on annuity insurance generally including pensions and other retirement benefits

For record purposes, can we meet you? Do please give us a little some background about yourself?

My name is Oyekola Taiwo; I hail from Ejigbo Local government in Osun State.

I finished secondary school in Ejigbo Baptist High School in 2000 and proceeded to The Polytechnic, Ibadan to study Accounting, and I have a Diploma in Accounting.

I went further to study Economics at Lagos State University. I have done several professional courses and attended Risk Management seminars in Nigeria and abroad

Looking at your various fields of study, what eventually prompted your move into the Insurance Industry?

The journey of insurance started in 2008 when I lost my job in a private oil company and decided to join as a risk advisor. In my first year with the organisation, i made a significant premium pool that nobody had ever done.

Could you please give us an overview of the challenges you are being faced with in your insurance journey.

Well, insurance acceptability is very low in Nigeria, with a higher level of illiteracy, low income, no job, etc, but the situation has really changed with regulators’ involvement. So, a lot of people are taking insurance policies very well, and the last premium the insurance sector posted for the 2024 has proved the point. The total premium posted for 2024 – #1,562 trillions – is up 56% from 2023 premium.

What provisions are Insurance Companies making for private individuals/ entrepreneurs who want to enjoy the annuity scheme but are not under a federal government or formal job setting?

There are in-house annuities of different options for entrepreneurs and business owners. The annuity allows policy owners to save money towards a specified duration for the retirement age at 50,55,60,65, and 70 years referred to as deferred annuity.

This is an immediate annuity designed for newly retired employees or self-employed individuals who want to use single deposit payment converts to immediate payment annuity.

There are options for annuitant life insurance covers, escalation annuity to hedge against inflation, and spouse annuity.

Similarly, at the demise of annuitants on deferred annuity options, all premiums paid would be refunded plus interest.

 From what we have seen, you are becoming synonymous with one important aspect of Insurance, which is Annuity amongst other products, what is the reason behind this?

The major reason I am passionate about Annuity and everything that has to do with retirement is because of the way retirees have suffered in the past, trying to receive their retirement payments.

During the administration of President Olusegun Obasanjo however, there was a change in policy that frowned against the maltreatment of retirees. This was in June 2004, and it changed the whole process and brought about the National Pension Commission (PENCOM).

Usually, each state had a company manage its staff pension, which led to a lot of fraud in the process. However, when the new policy came, we were trained.

It was during that process that I saw bigger opportunities and gained deep interest.

I knew I could make a difference in the way retirees were being treated. I knew I could be of assistance to them, help them get their money as at when due; that was what made me go into it.

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What are the key benefits of an annuity policy for the retired and for those who are in the process of their retirement?

There are a lot of benefits but before the inception of Insurance introduced by the Former CBN (Central Bank of Nigeria) Governor, Sanusi Lamido, there was a policy called Pension Fund Administration (PFA) but a lot of fraudulent and unethical activities were later detected there.

When the Insurance Annuity Policy came on board, it brought about a product called LIABILITY Programme (Whereby the retired gets to receive a stipulated amount of money for life).

Unlike PFA which does Programme withdrawal, it is a temporary cash disbursement to the retired. Another great benefit is getting payments as at when due; without going through stress.

My company also gives higher ratio in terms of monthly pension.

Being in a trusted Insurance company known for integrity, we ensure that we pay our clients as at when due. Even when death occurs, we ensure that the beneficiaries/next of Kin gets the stipulated amount (claim) apportioned for the deceased, and even guide them in the form of free consultations on how to utilise the money effectively.

Could you please give us an overview of the challenges you are being faced with in your insurance journey.

Well, insurance acceptability is very low in Nigeria, with a higher level of illiteracy, low income, no job, etc, but the situation has really changed with regulators’ involvement. So, a lot of people are taking insurance policies very well, and the last premium the insurance sector posted for the 2024 has proved the point. The total premium posted for 2024 – #1,562 trillions – is up 56% from 2023 premium.

What would be your take on the new tax law for individuals! how will it, on the long run, affect the insurance sector?

While life insurance has been in the tax law for a long time but some people have not been utilising it.

Also, it will increase insurance companies’ customers, premiums, and profits margin significantly,

It will definitely increase the insurance sector’s contribution to the Gross Domestic Product (GDP) of Nigeria.

Let’s take a look on how the gospel of Annuity under Insurance is being widely spread compared to inception years ago; what would you say are the drivers of this level of acceptability by people?

There have been large improvement compared to those days when it would take months before people get paid. In fact most of them had to travel to as far as Abuja in order to process their pension which is no more in the context.

Now, the policy has broken all those barriers. The policy says: “If you are working in an organisation, choose a PFA that would manage your pension, and immediately you retire, your money should be processed.

Some who work in parastatals and ministries get their pension almost immediately. The pension process is now very fast & transparent. The payment of death benefits and claims has also become very fast because there is a PENCOM Law that checkmates the activities of both the PFA and also insurance companies.

We have the National Insurance Commission (NAICOM) that oversees the Insurance Sector while PENCOM Oversees the Pension Sector compared to the past when there were no strong regulatory bodies.

There is even a law that all organisations that use PENCOM must remit their money as long as it has been deducted from staff salary and if there is no remittance, such organisation would face government consequences.

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What Sector of the economy or workforce is this Annuity Programme primarily targeted; how does your organisation come through for entrepreneurs who have interest in the policy

Also looking at how competitive this sector is, why should people prefer you to others?

The annuity programme is available for both Private and Public sector operators. I fact, we have a policy for entrepreneurs and individuals whose companies do not have PENCOM but who want to be beneficiaries of the programme.

Such people can pick up a form because we are talking about Guaranteed and Dependable income cash flow.

Walk into any insurance company to pick up an annuity form for yourself and you will be asked how much you choose to be receiving monthly; you can even decide the age at which you want to be receiving your pension.

However, feel I am the best in this game because i prioritise value and quality customer services over money.

I pay attention to clients to identify their basic problems. Most times, I go overboard to create lasting solutions, guide them through the journey of securing their annuity policy.

I am so keen on transparency, trust and loyalty which has helped me build strong customers relationship and referrals.

I follow up their payments process closely to ensure that they are paid as at when due without any form of delay.

I also help them claim their money from places they had forgotten or abandoned

How do you Compare Annuity over other Packages in Insurance?

Annuity is guaranteed, in the sense that, no matter what happens in the economy, you are not affected because Insurance has taken that risk for you. As long as you have done your own part, that money is guaranteed to be paid to you irrespective of the challenges the said insurance faces.

It is very much dependable in that you are sure to get it at a stipulated time of the month.

It is also a life time payment. It doesn’t stop; except the client dies and in situations like that , the next of Kin keeps getting the money. Although we have different types of annuity but they have similar benefits

We have had cases of people complaining of being swindled by insurance companies; especially that the insurance companied do not pay what they promise; at what point do insurance companies refuse to pay their clients?

There are many major causes why insurance may refuse to pay:

1. When the biodata provided by the client is inaccurate in the sense that some falsify their age;
2. Clients who take life assurance policy having serious underlying sicknesses which they refuse to disclose to the insurance company, which eventually claims their lives.
3. If the client had not been paying premium and eventually something happens.

An insurance would not just refuse to pay claims if there are no underlying factors from the side of the client.

There are regulatory bodies checkmating the insurance sector. Instead of talking about the aspect that they are at fault in, some clients would just heap the blame on the insurance company, saying it refuses to pay.

. If the President was watching you right now or is with you, what are the suggestions and new strategies you would want them to put in place to enhance the annuity programme?

Apparently, the annuity pension has come to stay in Nigeria, and the government has put regulators in place to monitor the activities insurance transaction and investment to safeguard the interest of the annuitants. There is no fear that the annuity funds are not in hand of any insurance companies and Pension Funds Custodian in charge fully.

However, economic instability and inflation are really affecting the annuitants, but there is an option of annuity to hedge against inflation.

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What advice do you have for the public concerning insurance policies generally?

It is necessary for the general populace to embrace insurance for their businesses and loved ones.

There’s a lot that policy regulators have put in place to make policyholders get claim and benefits faster.

However, insurance is the mother of all investments, and it is hope for the common man

As we all know, life is full of different events and it is not expensive to buy an insurance policy.