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The National Insurance Commission has directed all insurance policyholders to comply with mandatory NIN and CAC verification as part of new identity and documentation standards for the sector.
The regulator said the requirement applies to both individuals and corporate customers seeking to purchase or renew insurance policies across Nigeria. NAICOM explained that the directive is part of efforts to strengthen customer identification and reduce fraud in the industry.
According to the commission, linking policyholder information with the National Identity Number will help insurers verify customer details more accurately. For businesses, CAC compliance will ensure that registered entities are properly documented before taking out insurance covers.
Insurers have been instructed to update their onboarding processes and review existing customer records to ensure full adherence to the new rule. Many companies are expected to introduce additional verification steps in the coming weeks.
NAICOM said the move will enhance transparency in policy management and claims processing, areas where inaccurate or incomplete customer data has created frequent disputes. The commission believes that better data alignment will improve sector stability and build trust among insurance consumers.
Stakeholders note that the directive aligns with broader financial sector reforms aimed at tightening identity validation, combating fraud, and improving regulatory oversight. However, concerns remain about how customers without NIN or updated CAC documents will navigate the transition.
Industry experts warn that insurers may face short-term operational delays as they restructure systems and train staff to manage the new requirements. Some also caution that rural and low-income customers could experience onboarding challenges due to limited access to digital registration centers.
Despite these concerns, NAICOM maintains that the long-term benefits outweigh the temporary disruptions. The regulator described accurate identification as essential for a modern, transparent, and secure insurance marketplace.
The regulator said the requirement applies to both individuals and corporate customers seeking to purchase or renew insurance policies across Nigeria. NAICOM explained that the directive is part of efforts to strengthen customer identification and reduce fraud in the industry.
According to the commission, linking policyholder information with the National Identity Number will help insurers verify customer details more accurately. For businesses, CAC compliance will ensure that registered entities are properly documented before taking out insurance covers.
Insurers have been instructed to update their onboarding processes and review existing customer records to ensure full adherence to the new rule. Many companies are expected to introduce additional verification steps in the coming weeks.
NAICOM said the move will enhance transparency in policy management and claims processing, areas where inaccurate or incomplete customer data has created frequent disputes. The commission believes that better data alignment will improve sector stability and build trust among insurance consumers.
Stakeholders note that the directive aligns with broader financial sector reforms aimed at tightening identity validation, combating fraud, and improving regulatory oversight. However, concerns remain about how customers without NIN or updated CAC documents will navigate the transition.
Industry experts warn that insurers may face short-term operational delays as they restructure systems and train staff to manage the new requirements. Some also caution that rural and low-income customers could experience onboarding challenges due to limited access to digital registration centers.
Despite these concerns, NAICOM maintains that the long-term benefits outweigh the temporary disruptions. The regulator described accurate identification as essential for a modern, transparent, and secure insurance marketplace.