The National Insurance Commission (NAICOM) has issued a new regulatory directive making the submission of National Identification Number (NIN), Bank Verification Number (BVN), and valid Corporate Affairs Commission (CAC) documents a compulsory requirement before any insurance contract can be initiated in the country.
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In a circular dated October 22, 2025, and signed by Olugbenga Jaiyesimi, Deputy Director of the Market Conduct & Complaints Bureau on behalf of the Commissioner for Insurance, the regulator instructed all insurance companies and brokers to ensure strict compliance with the new Know Your Customer (KYC) rule.
The measure, introduced pursuant to Section 64(4) of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, is expected to enhance transparency, identity verification, and fraud prevention within the insurance sector.
“An insurance underwriter and broker shall not provide or incept any insurance cover without having obtained the BVN and NIN of the individual client and CAC documents of the corporate client,” the circular stated.
NAICOM also directed that all proposal forms must include these identification requirements going forward and that insurers must obtain them before activating any insurance policy, including Group Life Cover.
For group insurance arrangements, operators are required to collect employees’ schedules containing names, dates of birth, BVNs, and NINs before coverage begins.
The circular further mandated an update of existing policies lacking complete identity information on or before December 31, 2025. Insurers must proactively reach out to affected policyholders directly or through intermediaries — to regularise their records.
To ensure smooth implementation, companies are required to conduct awareness campaigns notifying clients of the new compliance standards.
NAICOM warned that enforcement will be strict, adding that operators or intermediaries who fail to adhere to the directive will face regulatory sanctions.
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