The National Insurance Commission has issued a new directive tightening Know-Your-Customer requirements for insurance contracts across Nigeria, mandating that individual clients provide their National Identification Number and corporate clients submit Corporate Affairs Commission documents before any insurance cover can take effect. The circular, issued on Friday and signed by the Deputy Director of Market Conduct & Complaints Bureau on behalf of the Commissioner, applies to all policies, including Group Life cover.
According to NAICOM, the directive titled ‘Mandatory Submission of National Identification Number and Certificate of Incorporation as Material Information for All Insurance Contracts Including Group Life Cover’ is part of ongoing efforts to enhance transparency and compliance with KYC requirements, in line with the Nigerian Insurance Industry Reform Act 2025 and the powers granted under the NAICOM Act 1997. The regulator emphasised that insurance underwriters and brokers must not provide or accept cover without the required identification and incorporation documents, reinforcing accountability across the sector.
Under the new requirements, proposal forms must clearly communicate the need for NINs and CAC documents, and for Group Life policies, insurers are expected to collect detailed schedules listing employees’ names, dates of birth, and NINs prior to policy commencement. Policies already in force but lacking the required information must be updated by 30 April 2026, with insurers and intermediaries engaging policyholders directly to link the records to the customer profiles. NAICOM also mandated intensified customer education campaigns, with insurers and brokers working together to ensure clients understand the importance of compliance.
The Commission warned that failure to comply would attract sanctions. Insurance underwriters that do not obtain the NIN or CAC documents, as well as intermediaries that fail to provide them, will face regulatory action. Firms in the sector have begun implementing the directive, urging customers to update their records. SUNU Assurances Nigeria, for instance, announced that all new and existing customers must submit the required information by 31 December 2025, noting that the step is now compulsory for obtaining and maintaining any insurance policy.
The directive is expected to strengthen due diligence in Nigeria’s insurance sector, reduce fraudulent practices, and enhance the reliability of client records. By ensuring that individuals and corporate entities provide verified identity and registration information, the measure seeks to foster greater investor confidence and support the growth of compliant, transparent insurance markets, while also helping MSMEs and corporate clients access insurance services with clear documentation and regulatory oversight.
