NAICOM mandates NIN, CAC compliance for insurance policyholders

The National Insurance Commission has issued a new directive mandating stricter Know-Your-Customer requirements for insurance contracts.

According to the circular issued on Friday, which was signed by the Deputy Director (Market Conduct & Complaints Bureau), Olugbenga Jaiyesimi, for the Commissioner for Insurance, individuals taking out cover must submit their National Identification Number, and corporate clients must provide Corporate Affairs Commission documents, before the inception of any insurance contract, including Group Life cover.

NAICOM said it issued the circular titled ‘Re: Mandatory Submission of National Identification Number and Certificate of Incorporation as Material Information for All Insurance Contracts Including Group Life Cover’ in line with Section 64(4) of the Nigerian Insurance Industry Reform Act 2025 and in the exercise of powers conferred on the Commission by the NAICOM Act 1997.

The regulator said the directive formed part of efforts to “strengthen transparency and facilitate the Nigerian insurance industry’s compliance with Know Your Customer requirements.”

The Commission stated that “An insurance underwriter and broker shall neither provide nor accept any insurance cover without having obtained the NIN of the individual client and CAC documents of the corporate client.

“An insurance underwriter and broker shall obtain the National Identification Number from individual clients and CAC documents from corporate clients before acceptance and inception of any risk.

 The CAC documents referred to under this circular include the Certificate of Incorporation, Particulars of Directors, and Share Allotment (Status Update) of the intending entity.”

In addition, NAICOM ordered that “All proposal forms shall clearly restate the requirement for NIN from individuals and CAC documents from corporate entities, which shall be obtained before cover inception. For Group Life policies, underwriters or brokers shall obtain a schedule listing the employees’ names, dates of birth, and NINs prior to commencement of cover.”

Underwriters were also instructed that “Insurance underwriters are required to reject ab initio any risk offered without submission of NIN or CAC documents.”

For policies already in force but lacking required identity records, the circular states: “For policies already issued prior to this directive that are still active but lacked the required NIN or CAC documents, the insurance underwriter shall, directly or through the insurance intermediaries, engage the policyholders to obtain same and link the information to the respective customer’s records on or before 30 April 2026.”

The directive also requires intensified customer education, noting that “Insurance underwriters are also mandated to collaborate with insurance brokers and agents to intensify customer awareness campaigns, emphasising the importance of compliance with this directive.”

NAICOM affirmed that it will closely monitor compliance, stating: “The Commission will monitor this circular and take appropriate regulatory action to ensure strict compliance.”

On sanctions, the Commission declared that “An insurance underwriter that fails to obtain, or an intermediary that fails to provide, the NIN or CAC documents shall be sanctioned by the Commission.”

Meanwhile, insurance firms have commenced meeting this directive as they urge customers to provide the required data. SUNU Assurances Nigeria, via its X handle, said, “By 31 December 2025, all new and existing customers must update their insurance details to meet NAICOM requirements. It is now a compulsory step for obtaining any insurance policy. Individuals can submit their NIN and BVN, while corporate clients can provide their CAC incorporation documents. Keep your policy updated.”
Source: https://punchng.com/naicom-mandates-nin-cac-compliance-for-insurance-policyholders