National Insurance Commission (NAICOM) has directed insurance companies in Nigeria to link all insurance policies to the National Identification Number (NIN) by April 30, as part of efforts to enhance transparency and reduce fraud within the industry.
The directive was announced by the Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Omosehin, during a media interactive session held in Lagos.
According to Omosehin, the requirement forms part of strengthened Know Your Customer (KYC) measures designed to improve identity verification in insurance transactions.
He explained that beginning April 1, every insurance policy issued in Nigeria must be directly connected to the policyholder’s NIN to ensure proper identification and accountability.
“This requirement takes effect on April 1. By that date, every insurance policy must be linked to a National Identification Number,” he stated.
The NAICOM chief noted that the directive would apply to both individual and group insurance policies. For group life insurance, employers will be required to submit the NINs of all employees covered under their policies to ensure accurate documentation.
He said the measure would help address cases where organisations insure fewer employees than they actually have while attempting to file claims for individuals not covered under the policy.
Omosehin added that the initiative would also allow regulatory agencies to verify compliance with statutory requirements more effectively.
As part of broader reforms, NAICOM is also digitising its processes and developing platforms that will enable government agencies to verify insurance records with ease.
Agencies such as the National Pension Commission and the Bureau of Public Procurement will 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.
Omosehin said the policy aligns the insurance industry with global standards on anti-money laundering and counter-terrorism financing, noting that the insurance sector had been the last major segment of the financial services industry to fully implement strict KYC requirements after banks, telecommunications firms, and stockbroking companies.
He called on stakeholders, including policyholders and the media, to support the initiative, stressing that it would enhance trust and credibility in Nigeria’s insurance sector.
The commissioner also highlighted NAICOM’s efforts to strengthen consumer protection by improving transparency in policy documentation, promoting prompt settlement of claims, and enhancing dispute resolution mechanisms.
According to him, the commission has created channels that enable policyholders to lodge complaints and receive timely resolution.
Omosehin expressed confidence that ongoing reforms in the sector—including the recapitalisation exercise—would lead to stronger and better-capitalised insurance companies capable of supporting Nigeria’s economic growth.
(NAN)
