The National Insurance Commission (NAICOM) has issued a new directive mandating all insurers and brokers in the country to obtain verifiable identity details, including the National Identification Number (NIN), Bank Verification Number (BVN) and Corporate Affairs Commission (CAC) documents of customers before initiating or renewing an insurance policy.
The move, which takes effect immediately, is part of the regulator’s broader effort to enhance market transparency, combat financial crimes and improve confidence.
The directive was contained in a new circular released by the commission at the weekend and signed by the Deputy Director, Market Conduct and Compliance Bureau, Olugbenga Jaiyesimi.
The circular, issued in line with Section 64(4) of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, prohibits any insurer or intermediary from providing coverage to individuals or corporate clients without verified identification.
“An insurance underwriter and broker shall not provide or incept any insurance cover without having obtained the BVN and NIN of the individual client and CAC documents of the corporate client,” it stated.
For group life and corporate insurance policies, insurers are required to collect comprehensive employee schedules, including names, dates of birth, NINs and BVNs, before activating coverage.
Policies already in force must be updated to include the details by December 31, 2025, as NAICOM has moved to align the insurance sector with the government’s financial integrity framework.
From an economic standpoint, analysts in the market view the directive as a potential game-changer for Nigeria’s insurance market. By tightening identity verification and enforcing compliance, the policy could reduce fraudulent claims, enhance underwriting accuracy, and improve investor confidence in a sector that contributes less than one per cent to the country’s gross domestic product (GDP).
From an economic standpoint, analysts view the directive as a potential game-changer for Nigeria’s insurance market. By tightening identity verification and enforcing compliance, the policy could reduce fraudulent claims, enhance underwriting accuracy, and improve investor confidence in a sector that contributes less than one per cent to the country’s gross domestic product (GDP).
However, industry operators warn that while the initiative is laudable, it may pose short-term operational challenges. Many small and medium-sized brokers, especially in rural areas, may struggle with data collection and integration within the tight deadline.
To mitigate compliance risk, NAICOM has directed insurers and brokers to embark on customer sensitisation campaigns and warned that defaulters will face regulatory sanctions.
The commission added that it will closely monitor implementation to ensure full compliance, describing the measure as essential to building “a transparent, resilient, and globally competitive insurance industry.”
If effectively implemented, experts believe the policy could accelerate Nigeria’s journey toward a more formalised insurance economy, boosting credibility, deepening market penetration, and attracting greater investment into the financial services sector.
