NAICOM, ARIAN forge alliance to address market abuses, others

By Henry Uche

National Insurance Commission (NAICOM) has reaffirmed its commitment to implement immediate and coordinated enforcement measures to address persistent market abuses, including unlawful rate-cutting, misrepresentation, and the mis-selling of insurance products by unlicensed entities.

The Commission assured it will strengthen the enforcement of the Nigerian Insurance Industry Reform Act (NIIRA 2025) framework to protect Nigerian insurance consumers from unauthorized and predatory practices as such sharp practices undermine consumer confidence and the stability of the insurance sector.

The Commissioner for Insurance (CFI), Mr. Olusegun Ayo Omosehin, made this known when the leadership of the Association of Registered Insurance Agents of Nigeria (ARIAN), led by its President, Mr. Olatubosun Mayowa, paid a courtesy visit to the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, at the Commission’s headquarters.

The regulator underscored its resolve to uphold regulatory standards and sanitize the insurance market through firm and coordinated enforcement actions. The Commission reiterated that safeguarding consumers and preserving market integrity remain central to its mandate.

Omosehin highlighted the importance of strengthening distribution channels through proper licensing and compliance. In this regard, both parties reaffirmed their commitment to capacity building for insurance agents and enhanced digital onboarding processes.

To enhance public awareness, he said the Commission will lead joint media and consumer education initiatives aimed at enabling Nigerians to identify genuine motor insurance policies, verify licensed insurers, and report suspected fraud or mis-selling through official channels. Both organizations agreed to sustain regular operational engagement and periodic reviews to ensure effective implementation of agreed actions.

The CFI reiterated the Commission’s broader policy direction of promoting healthy and transparent distribution networks as a means of encouraging legitimate participation in the market and deepening insurance penetration nationwide.

NAICOM Chief stressed that the Commission will act decisively against any form of infraction, noting that unlicensed entities must not purport to underwrite regulated insurance products. He affirmed that NAICOM will deploy the full weight of its regulatory and legal authority to protect consumers and uphold the integrity of the insurance industry.

He further urged the public to remain vigilant by verifying that insurers are duly licensed by NAICOM, carefully reviewing policy documents and agent credentials, and promptly reporting suspicious activities including unauthorized sellers, forged documents, or unusually low premiums through NAICOM’s official complaint channels.

In a remark, ARIAN President expressed the association’s commitment to supporting NAICOM’s regulatory and enforcement initiatives. Mayowa noted that ARIAN’s grassroots presence across the country positions it to provide credible market intelligence, enhance consumer protection, and support the identification and removal of unscrupulous operators.

ARIAN president pledged to intensify training programmes to increase the number of duly licensed agents and assist members experiencing challenges with NAICOM’s digital platforms.