The National Insurance Commission (NAICOM), in collaboration with the Association of Registered Insurance Agents of Nigeria (ARIAN), has reinforced efforts to combat the proliferation of fake motor insurance providers and unethical rate-cutting practices within the industry.
This renewed enforcement drive was a key focus at the recent Insurers Committee meeting and press briefing held on May 21, 2026. Stakeholders expressed growing concern over the increasing activities of unlicensed operators and fraudulent agents, which continue to erode public confidence in compulsory motor insurance.
Speaking at the briefing, Mrs. Ebelechukwu Nwachukwu, Chairman of the Communication and Stakeholders’ Management Sub-Committee of the Insurers Committee and Deputy Chairman of the Nigerian Insurers Association (NIA), confirmed that both NAICOM and ARIAN have adopted a zero-tolerance stance toward such practices.
She commended ARIAN’s proactive measures and urged industry players to treat the issue with urgency. According to her, the regulatory bodies have effectively taken the lead in addressing the challenges of fake third-party motor insurance and rate undercutting.
Mrs. Nwachukwu, who also serves as Managing Director of Rex Insurance Plc, further advised insurance companies to expand their presence into underserved communities. She noted that the absence of legitimate operators in many areas has enabled fraudulent agents and touts to thrive.
Providing updates on enforcement efforts, Mr. Abba Halil Inuwa, Senior Manager of Corporate Communications at NAICOM, disclosed that the Commission recently secured a legal victory against the Nigerian Cooperative Insurance Society (NCIS), which was found to be operating without proper authorization.
He explained that following NAICOM’s public warning about NCIS last year, the organization initiated legal action against the Commission. However, the case was dismissed on its merits, affirming NAICOM’s regulatory position.
Mr. Inuwa also highlighted that the enactment of the Nigerian Insurance Industry Reform Act 2025 has significantly strengthened the Commission’s enforcement capabilities.
In collaboration with the Nigeria Police Force, led by the Inspector-General of Police, NAICOM has conducted targeted enforcement operations in Abuja. These raids resulted in multiple arrests and the seizure of counterfeit insurance materials.
He noted that previous enforcement attempts were hindered by information leaks that compromised operations. However, the most recent exercise achieved substantial success, with suspects apprehended in possession of illegal materials.
Mr. Inuwa further revealed that some Vehicle Inspection Officers (VIOs) have been implicated in the distribution of fake motor insurance policies.
He assured that enforcement activities will be intensified nationwide, emphasizing that the Commission remains committed to prosecuting offenders and safeguarding the integrity of the insurance sector.
