Work In Harmony For A Sustainable Pension Industry: Onanuga Charges PFAs 

Yemisi Izuora 

 
The Director General, Lagos State Pension Commission, Mrs Folashade Onanuga has expressed disappointment over unhealthy competition between Pension Fund Administrators (PFAs) and life insurers, saying the only way to sustain the Industry is through harmonious relationships.

She admonished them as she warned that bickering and untidy struggle for market dominance would not support efforts to build a virile pension industry.

Onanuga, who gave the advice at the 2nd National Conference on Insurance and Pension, organised by the National Association of Insurance and Pension Correspondents (NAIPCO), said the competition between the two operators must be healthy in order to build confidence in Pension Reform Act (PRA). 

She said: “The competition between the two operators must be healthy, otherwise, the ultimate consumer will lose confidence in the transparency the PRA advocated, as human thinking will suggest that the infighting to gain upper market share, between the two operators means that the product being sold is more to the benefit of the operators than the ultimate consumer. The ultimate consumer will therefore be wary of both products.” 

While marketing annuity or programmed withdrawal products, Onanuga said PFAs needed to understand that they don’t have a monopoly over the business, but should rather work with annuity service providers to boost the pension industry. 

She advised that the National Pension Commission (PenCom) and the PFAs should be able to display the list of annuity service providers on their website while annuity service providers should also be able to display similar list on their website. 

“Marketers of both industries need to be sanctioned where they have been accused of de-marketing, whilst sharp practice by any employee aimed at boosting market share should be exposed and appropriate punishment meted out,” she added. 

She urged PenCom to organise consultative meetings with the operators under the umbrella of Pension Operators Association of Nigerian (PenOP) as they are pension operators while maintaining their membership of the insurance industry as they also offer other services that do not affect the insurance industry.