AIICO Insurance Plc has issued a detailed response to a Freelanews article accusing the company of opaque and predatory surrender practices in its long-term life insurance and savings products.
In an official statement from Ademola Adenekan, Senior Manager of Marketing & Communications, AIICO emphasized its commitment to customer engagement while defending the standard structure of its policies.
The statement, addressed to readers of the Freelanews report, reads in part:
“We have noted this article and would like to provide important context for your readers. AIICO Insurance takes every customer concern seriously, and we have engaged, and continue to engage, directly with the customer on the matter referenced.”
AIICO clarified that it would not discuss specifics of any individual policy publicly, citing customer confidentiality. However, it addressed the core principle behind the dispute.
The company described the policy in question as a long-term life insurance and savings product, which is standard globally. According to AIICO:
– A portion of premiums funds the cost of life insurance protection throughout the policy’s life.
– The remainder accrues as cash value.
– The surrender value upon early termination is based on the accumulated cash value as defined in the policy contract — not a full refund of total premiums paid.
“These provisions, along with terms relating to lapse and reinstatement, are clearly set out in the policy document issued to every customer at inception,” the statement noted.
AIICO acknowledged the complexity of long-term insurance products and reaffirmed its dedication to helping customers understand their contracts. In this specific case, the insurer said it has:
– Offered options for an amicable resolution.
– Re-engaged the customer to review the signed contract together.
The company, which has operated in Nigeria for over six decades, stated it remains “firmly committed to fairness, transparency, and full compliance with our regulatory obligations.”
It pledged to continue handling the matter and all customer concerns in line with the mutually binding contract terms.
The response comes after policyholder Oladeji Sofoluke publicly alleged significant losses upon surrendering a Flexible Endowment Plan, claiming hidden deductions for life cover and dissatisfaction with payout calculations and customer service.
Similar past complaints have surfaced regarding surrender values in AIICO’s savings-linked life products.
The company did not provide further financial details or comment on regulatory complaints raised in the original report.
