By David Akinmola
The newly enacted Nigerian Insurance Reform Act has introduced stricter penalties for individuals operating as insurance agents without proper licensing, including the possibility of a six-month jail term.
Under the provisions of the Act, anyone found selling, marketing, or brokering insurance products without authorisation from the National Insurance Commission (NAICOM) will be prosecuted, with offenders facing either imprisonment, fines, or both.
The reform, which is part of sweeping changes aimed at strengthening market discipline, enhancing consumer protection, and promoting professionalism in the insurance industry, seeks to eliminate unregulated practices that have undermined public trust in the sector.
Regulators say the law will help safeguard policyholders by ensuring that only qualified and vetted agents handle insurance transactions. Licensed agents are expected to meet strict competency, ethical, and capital requirements, and operate under ongoing regulatory supervision.
Industry stakeholders have welcomed the development, noting that the crackdown on unlicensed operators will help curb fraudulent sales, misrepresentation of policy terms, and other malpractice that have discouraged Nigerians from purchasing insurance.
NAICOM has urged the public to verify the licensing status of any insurance intermediary before entering into agreements, warning that both individuals and organizations who engage unlicensed agents could face legal consequences.
The Act also empowers NAICOM to maintain a publicly accessible register of licensed agents, making it easier for consumers to confirm legitimate operators and for regulators to enforce compliance across the country.
