Insurance firms and brokers have urged the National Insurance Commission (NAICOM) to modify the linkage of policyholders’ insurance records with the National Identity Management Commission (NIMC) database through the National Identity Number (NIN).

Under the new directive, insurers are required to link all policies written from 2025 to policyholders’ NINs, with NAICOM setting April 30 as the compliance deadline.

The move is part of broader efforts by regulators to strengthen know-your-customer (KYC) standards, improve data integrity and curb identity-related risks within the insurance ecosystem.

However, operators said the timeline poses operational challenges, particularly for existing policies issued earlier in the year before the directive was announced.

As a result, insurers and brokers are now requesting that the requirement apply only to new policies going forward, rather than retroactively covering all policies issued previously.

The industry is engaging the regulators through its umbrella bodies, the Nigeria Insurers Association (NIA) and the Nigerian Council of Registered Insurance Brokers (NCRIB), in an effort to secure flexibility while aligning with NAICOM’s broader objectives.

Speaking after the Insurers’ Committee meeting held in Lagos last weekend, Chairperson of the Committee’s Publicity Sub-Committee, Ebelechukwu Nwachukwu, said the NIN-policy linkage initiative formed a major part of the discussion between operators and the regulator.

Nwachukwu, who is also Managing Director of REX Insurance Limited, explained that while NAICOM has maintained the April deadline, the industry is exploring practical options to ensure the policy takes effect primarily on new insurance contracts.

According to her, operators broadly support the policy objective of strengthening customer identification and improving regulatory oversight, but believe a slight adjustment in implementation would enable smoother compliance across the industry.

“NAICOM has indicated that the deadline remains unchanged, but discussions are ongoing on how best to implement the directive so that everyone in the industry can align with the objective without operational disruptions,” she said.

Industry analysts said linking insurance policies with NIN could significantly improve the sector’s data architecture, reduce fraud and support regulatory supervision, especially as Nigeria moves towards a more integrated financial identity framework.

Beyond the NIN directive, the committee also reviewed several initiatives aimed at expanding insurance penetration. These included NAICOM’s engagement with the Bureau of Public Procurement (BPP) to strengthen the use of insurance bonds in securing government contracts.