The insurance industry presently has between N70 to N80 billion life annuity fund, Commissioner for Insurance, National Insurance Commission (NAICOM) Mohammed Kari has said.
He made this known following calls by the Minster for Power, Works and Housing, Babatunde Fashola that the industry should invest in infrastructural development.
Speaking with journalists in Abuja, the Commissioner said that the annuity fund can be invested into infrastructural development and investment with assurance from government and development institutions that the industry will be able to recoup the funds invested.
He added that the fund is currently building up, noting that it is a huge long term fund.
According to him, despite the law restricting insurance companies from investing more than 25 per cent in non-insurance business, the commission can issue prudential guidelines to amend that part of the law.
He added that if the industry is willing to assist the government with between N10 billion or N20 billion in a year, the Federal Government will do a lot more for the industry.
He said: “If we are willing to show government that we can support them with N10 billion or N20 billion a year, imagine what they will do for the industry. We can even invest in the Bank of Industry and other developmental institution as long as such investments are guaranteed. We can invest some of our accumulated funds in such investment.”
“The short term funds can also be invested since insurance laws does not restrict any company on investment. The prudential guideline that is issued by NAICOM from time to time is what dictates where any company can put in its funds.”
Kari stressed that the industry is at liberty to change its laws to suit the current reality on ground aimed at deepening insurance penetration in Nigeria.