NAICOM has directed that all insurance policies in Nigeria be linked to the National Identification Number (NIN) by April 30, as part of measures to strengthen transparency and curb fraud in the industry.
The Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr Olusegun Omosehin, disclosed this during a media interactive session in Lagos.
Omosehin said the directive forms part of enhanced Know-Your-Customer (KYC) requirements aimed at improving identity verification in insurance transactions.
According to him, every insurance policy must be directly linked to the policyholder’s NIN to ensure proper identification and accountability.
“This requirement takes effect from April 1. By that date, every insurance policy must be linked to a National Identification Number,” he said.
He explained that the directive would apply to both individual and group insurance policies.
In the case of group life insurance, Omosehin said employers would be required to provide the NINs of all employees covered under their policies to ensure accurate records and transparency.
According to him, the move would prevent situations where organisations insure fewer employees than they actually have while filing claims for individuals not captured under the policy.
He added that the initiative would also help regulatory agencies verify compliance with statutory requirements.
Omosehin said NAICOM was also automating its processes and developing digital platforms that would enable relevant government agencies to verify insurance records more easily.
He noted that agencies such as the National Pension Commission and the Bureau of Public Procurement would be able to access the commission’s verification system to confirm the authenticity of insurance certificates and the number of employees covered under group policies.
The NAICOM chief said the reform was part of broader efforts to align the insurance sector with global anti-money laundering and counter-terrorism financing standards.
According to him, the insurance industry had been the last major financial services segment to fully implement strict KYC requirements after banks, telecommunications firms and stockbroking companies.
Omosehin urged stakeholders, including the media and policyholders, to support the initiative, noting that the measure would enhance credibility and trust in the insurance sector.
He also emphasised that the policy would be mandatory and would take effect as scheduled.
Omosehin said the commission was strengthening consumer protection measures to boost confidence in the insurance industry.
According to him, NAICOM has established mechanisms to ensure fair treatment of policyholders, improve transparency in policy documents and promote prompt settlement of claims.
He added that the commission had also enhanced dispute resolution channels to enable policyholders lodge complaints and receive timely resolution.
Omosehin expressed optimism that ongoing reforms in the sector, particularly the recapitalisation exercise, would produce stronger and better-capitalised insurance companies capable of supporting Nigeria’s economic growth.
