The National Insurance Commission (NAICOM) has stepped up its regulatory stance against fraudulent practices in the insurance sector, indicating a renewed crackdown on unlicensed operators, mis-selling, and unlawful market conduct under the Nigeria Insurance Industry Reform Act (NIIRA) 2025.
The development followed a key engagement between NAICOM and the Association of Registered Insurance Agents of Nigeria (ARIAN), where both parties discussed rising concerns around market abuses and the need for stronger enforcement mechanisms to protect policyholders.
ARIAN’s leadership, led by Olatubosun Mayowa,its president, paid a courtesy visit to Olusegun Ayo Omosehin, the commissioner for Insurance, at the Commission’s headquarters. The meeting, according to NAICOM, provided an opportunity to strengthen collaboration on intelligence sharing, enforcement coordination, and consumer protection.
NAICOM stressed that the insurance market cannot function effectively where illegal operators continue to misrepresent products, undercut approved pricing structures, and sell policies without regulatory approval. The Commission warned that such practices not only distort competition but also erode public trust in the industry.
As part of the outcomes of the engagement, the regulator said it would intensify coordinated enforcement actions targeting key areas of abuse, including unlawful rate-cutting, misrepresentation of insurance policies, and the sale of products by unlicensed entities operating within the market.
The Commissioner for Insurance, Olusegun Ayo Omosehin, noted that these infractions remain a major threat to the stability and credibility of the sector. He reiterated that NAICOM would deploy the full weight of its regulatory and legal powers to identify and sanction offenders in order to sanitise the market.
He also emphasised the importance of strengthening insurance distribution channels through proper licensing and tighter compliance monitoring. According to him, ongoing reforms under the NIIRA 2025 framework are designed to close gaps that have allowed fraudulent practices to persist within the system.
In support of enforcement efforts, ARIAN pledged to work more closely with the regulator, noting that its nationwide presence places it in a strong position to provide market intelligence and assist in identifying bad actors within the industry. The association also expressed readiness to support public awareness campaigns aimed at educating consumers on identifying legitimate insurance providers.
NAICOM further disclosed plans to enhance consumer protection through joint media campaigns and education initiatives. These efforts, it said, will focus on helping Nigerians verify licensed insurers, recognise genuine insurance products, and report suspicious transactions or fraudulent operators through official channels.
Both institutions agreed to sustain regular engagement and operational collaboration in order to ensure that enforcement actions are effectively implemented and monitored across the market.
Reaffirming its regulatory position, NAICOM warned that unlicensed operators have no legal authority to underwrite insurance products in Nigeria, stressing that continued violations would attract decisive sanctions.
The Commission also urged the public to remain vigilant by confirming the licensing status of insurers, carefully reviewing policy documents, and verifying agent credentials before engaging in any insurance transaction. It added that reports of fake operators, forged documents, or unusually low premiums should be promptly escalated through its official complaint platforms.
With the NIIRA 2025 framework now in focus, NAICOM’s latest move underscores a stronger push to clean up persistent abuses in the insurance market and restore confidence in a sector long challenged by issues of trust and compliance.
