The insurance industry don launch new offensive against fake motor insurance operators and rate-cutting practices. National Insurance Commission (NAICOM) and Association of Registered Insurance Agents of Nigeria (ARIAN) declare zero tolerance for illegal operators wey dey undermine the sector. Dis one na the main gist for Insurers Committee meeting and press briefing wey hold on Thursday, May 21, 2026. Stakeholders express concern about growing activities of fake insurance agents, unlicensed operators, and rate-cutting practices wey dey weaken confidence for compulsory motor insurance.
Chairman of Communication and Stakeholders’ Management Sub-Committee of Insurers Committee and Deputy Chairman of Nigerian Insurers Association (NIA), Mrs. Ebelechukwu Nwachukwu, talk say NAICOM and ARIAN don intensify efforts to tackle fake third-party motor insurance and rate undercutting. She commend ARIAN for taking steps to address the issue and urge the insurance industry to treat the development seriously. “NAICOM and ARIAN don take over the insurance industry fight against rate cutting and fake third party motor insurance,” she tok.
Nwachukwu wey be Managing Director of Rex Insurance Plc further call on insurance companies to establish offices for underserved areas across the country to reduce spread of fake insurance products. According to her, absence of genuine insurance operators for many communities don create room for illegal agents and touts to thrive. Senior Manager, Corporate Communications for National Insurance Commission, Abba Halil Inuwa, disclose say the Commission don already secure legal victory for a case involving Nigerian Cooperative Insurance Society (NCIS), wey he describe as operating illegally.
Inuwa explain say after NAICOM publish warning against activities of NCIS last year, the organisation take the Commission to court but lose the case. “After that publication they take us to court and the case was thrown out for our favour based on merit issues, so NCIS no get any case against the Commission,” he tok. He add say enactment of Nigerian Insurance Industry Reform Act (NIIRA) 2025 don further strengthen NAICOM enforcement powers.
Inuwa say the Commission, in collaboration with Inspector-General of Police, don already carry out raids for Abuja leading to arrests and confiscation of fake insurance materials. “The legal department of the Commission and the police dey work closely to prosecute those arrested. Very soon both for Lagos and Abuja we go do another one,” he tok. He reveal say previous enforcement exercise no achieve much because information leak to suspects before operation. “Dis time around na huge success because plenty things were confiscated from the people red-handed,” he add.
According to him, some Vehicle Inspection Officers (VIOs) also dey implicate for illegal sale of fake motor insurance policies. He assure say enforcement operations go continue nationwide and stress say the Commission no go relent until offenders dey prosecuted. Meanwhile, Association of Registered Insurance Agents of Nigeria (ARIAN) raise concerns about low level of insurance penetration for country, particularly near-absence of structured industry operations across parts of Northern Nigeria.
Mayowa Olatubosun, president of ARIAN, issue warning during Insurers’ Committee meeting for Lagos. He note say while most insurance companies continue to concentrate marketing efforts, branch networks, and strategic investments for Lagos and select southern urban centres, large parts of Northern Nigeria remain significantly underserved. According to him, dis imbalance don leave vast economic corridors without adequate insurance coverage, exposing agricultural ventures, transport operators, traders, and small and medium-sized enterprises to unmanaged risks.
He warn say for several northern states, absence of visible branch offices, certified agents, and retail insurance structures don contribute to “near-zero operational presence,” situation wey he say contradict industry broader financial inclusion goals. Beyond low penetration, Olatubosun also link weak physical presence of insurers for region to rising incidence of fake insurance products. He argue say absence of verified corporate outlets and licensed intermediaries create enabling environment for fraudsters to exploit unsuspecting public with counterfeit policies.
He stress say strengthening legitimate insurance structures across underserved regions go be key to restoring trust and reducing fraud for sector. “The industry cannot achieve its true potential under the current lopsided distribution arrangement,” he tok, urging regulators and underwriting firms to prioritise deployment of licensed agents to grassroots communities across North. He further call for deliberate expansion into states like Borno, Sokoto, and Jigawa, arguing say these markets remain largely untapped for decades despite economic potential.
Reacting to concerns, members of Insurers’ Committee, wey include executive management of National Insurance Commission (NAICOM) and managing directors of insurance companies for Nigeria, describe submission as timely and critical to long-term sustainability of industry. They note say expanding insurance reach beyond traditional urban centres go be essential to deepening penetration, improving trust, and strengthening sector contribution to national economic resilience.
