BY NKECHI NAECHE-ESEZOBOR—The National Insurance Commission (NAICOM) has declared total war on fake insurance operators, announcing its readiness to prosecute all suspects arrested during a recent high-impact crackdown in Abuja.
The Commission sent a stern warning to fraudsters, declaring that it is “no longer business as usual” for perpetrators of fake insurance policies in Nigeria.
Mrs. Ebelechukwu Nwachukwu, a member of the Insurers’ Committee, disclosed this while briefing journalists at the conclusion of the insurance industry committee’s meeting held in Lagos on Thursday.
According to Nwachukwu, the Commissioner reflected on the success of the recent Abuja raid, noting that while previous exercises suffered from information leaks that tipped off suspects, this latest operation achieved massive success.
The raid resulted in the confiscation of illegal documents—including fake Nigerian Insurance Industry Database (NIID) papers—and the arrest of both front-line “foot soldiers” and the masterminds behind the syndicates.
She said the commission assured that the legal department of NAICOM and the Nigeria Police Force are working tirelessly to ensure those arrested are prosecuted to the full extent of the law.
“Unlike previous arrests where cases stalled, there is a firm commitment from both the Commission and the Inspector General of Police to follow through with these prosecutions.”
To completely sanitize the industry, NAICOM confirmed that unannounced nationwide raids will continue across Lagos, Abuja, and other states.
Key Takeaways from the Insurers’ Committee Meeting;
Beyond the enforcement updates, the committee outlined several regulatory, technological, and strategic initiatives aimed at boosting public confidence in the Nigerian insurance sector:
She said the commissioner noted that the industry is on track to develop and launch a homegrown Nigerian Experience Mortality Table by June 2026.
This initiative, according to him will provide accurate, localized actuarial data tailored to the Nigerian demographic. A two-month extension window has been factored into the timeline to ensure seamless data compilation.
On Personal Liability for Insurance CEOs, she said the commissioner issued a stern warning to Chief executives, while noting that moving forward, any regulatory compliance failure by an underwriting firm will be treated as a direct personal failure of the company’s Chief Executive Officer (CEO).
On NIN/BRN, No Claims Payment, operators reiterated their commitment to the policy.
They confirmed that no insurance claims will be paid to any individual or corporate organization whose identity details have not been updated. The industry is currently awaiting final directives from the regulator regarding enforcement guidelines.
On Low Credit Bureau Integration Flagged, the Commission expressed deep concern over the low adoption of credit bureau facilities by insurers.
According to the commission only, only 12 insurance companies are registered with the Credit Bureau, and only five are active.
Operators were urged to actively onboard and share data with the bureau. This integration will allow the industry to flag chronic premium defaulters and individuals with fraudulent claims histories, completing the financial sector’s data loop.
On Travel Insurance and ECOWAS Brown Card, the committee highlighted newly released guidelines for travel insurance, designed to regulate the product properly and ensure Nigerian travelers receive full value and benefits.
Additionally, the Commissioner commended motor insurance underwriters for successfully hosting the first ECOWAS Brown Card actualization project event.
