Introduction
With the rise of digital transactions and the growing awareness of financial protection, more Nigerians are seeking insurance policies for health, life, auto, property, and business. Unfortunately, this demand has also given rise to fraudulent insurance companies and scammers posing as legitimate providers.
Falling victim to a fake insurance company doesn’t just waste your money—it can leave you financially exposed during emergencies. That’s why it’s crucial to know how to spot a scam before you hand over your hard-earned naira.
In this detailed guide, you’ll learn how to identify fake insurance companies in Nigeria, red flags to watch out for, and steps to verify a legitimate provider before buying any policy.
1. Understand the Role of NAICOM
Before diving into scam red flags, it’s essential to understand the role of NAICOM (National Insurance Commission).
NAICOM is the official regulator of all insurance operations in Nigeria. It grants licenses to operate, monitors compliance, and protects consumers.
✅ How NAICOM Helps You:
- Licensing and registration of insurers
- Publishing a list of approved companies
- Setting and enforcing insurance standards
- Handling complaints and disputes
👉 If an insurance company isn’t registered with NAICOM, it’s not legitimate—period.
2. Check the NAICOM Website for Verification
The first and most reliable step in identifying a fake insurance company is to verify their status with NAICOM.
🔍 Steps:
- Visit: https://www.naicom.gov.ng
- Navigate to the Registered Companies section.
- Search for the company by name.
- Ensure their license is active, not expired or suspended.
If the company isn’t listed, stop immediately. It is either fake or unlicensed to operate in Nigeria.
3. Beware of Unrealistic Offers or Discounts
Fake insurance companies often attract victims with too-good-to-be-true offers, such as:
- Extremely low premiums with unusually high coverage
- Promises of instant claims payout
- No medical or risk assessment
- Free insurance bundled with unrelated services
- “Limited-time offers” that rush you into signing up
🚩 Red Flag: Real insurers operate under strict underwriting standards. If someone offers you ₦1 million life cover for just ₦1,000/month with no questions asked, it’s probably a scam.
4. Investigate the Company’s Online Presence
✅ What to Look For:
- A professional website with clear information about policies, team, contact address, and license number.
- An active and consistent social media presence on platforms like Facebook, LinkedIn, or Twitter/X.
- Verified reviews on Google, Nairaland, or financial blogs.
- An official physical office address—not just a random shop or P.O. Box.
🚩 Red flags include:
- Poorly written content, spelling errors, or a free email domain (like xyz@gmail.com instead of info@companyname.com).
- No reviews, or only suspicious 5-star reviews that look fake.
- A website with no SSL certificate (check for “https://”).
5. Visit the Company’s Office (if possible)
If the company claims to have a physical location, visit the office before committing. A fake insurer may:
- Operate from an unbranded shop or internet café
- Use temporary or fake addresses
- Refuse physical meetings or only meet in public places
👉 Legitimate insurers usually operate from well-established offices and have clear branding, staff in uniforms, and printed materials.
6. Confirm Contact Numbers and Emails
Try calling or emailing the company using the contact details on their website or flyer.
✅ Legitimate companies will:
- Answer calls during business hours
- Use official business lines or domains (e.g., @leadway.com, @aiicoplc.com)
- Respond professionally to inquiries
🚩 Scammers may:
- Use only WhatsApp numbers or untraceable lines
- Avoid verbal conversations and rely on messaging
- Push you to “register quickly” through DMs or social media
7. Look for Red Flags in the Policy Documents
Before signing any insurance policy, read the document carefully.
🚩 Watch Out For:
- No clear terms and conditions
- Missing policy numbers, registration info, or NAICOM approval
- Documents with inconsistent fonts, poor grammar, or blank pages
- Policies that are too vague or too broad
If you’re unsure, request the document and take it to another licensed broker or NAICOM office for a second opinion.
8. Be Wary of Individual Agents Without Backing
Many fake insurance scams are perpetrated by individuals posing as agents for big companies.
Ask them:
- Which company they represent
- To provide a valid agent ID card
- To direct you to the company’s official website
- If you can make payment directly to the insurance company, not to a personal account
NEVER pay to an individual’s account. Always confirm that payments go directly to a company’s verified account.
9. Research the Company’s History
Do a background check on:
- When the company was established
- Who the directors or owners are
- Past legal issues or scam complaints
- Whether they are a subsidiary of a well-known group
You can also check platforms like:
- CAC (Corporate Affairs Commission): https://pre.cac.gov.ng
- Google search with “Company Name + Scam”
- Business directories or industry listings
10. Ask Questions and Demand Transparency
Scammers often avoid giving detailed answers. A legitimate insurance company will:
- Explain the benefits and exclusions clearly
- Break down your premium calculation
- Provide written and digital documents
- Allow you time to review the offer
If they become impatient, defensive, or pushy—walk away.
What to Do if You Suspect a Scam
If you suspect that you’ve been approached by or fallen victim to a fake insurer:
🔔 Report immediately to:
- NAICOM Complaint Portal: https://naicom.gov.ng
- FCCPC (Federal Competition & Consumer Protection Commission)
- The Nigerian Police (Special Fraud Unit)
- EFCC if large sums were involved
Also, share your experience online to warn others.
Legit Insurance Companies in Nigeria (as of 2025)
Here are some examples of licensed and reputable insurers:
| Company Name | Popular Products |
|---|---|
| Leadway Assurance | Life, auto, health, travel |
| AIICO Insurance | Health, pension, savings plans |
| AXA Mansard | SME, travel, property insurance |
| Custodian & Allied | Motor, life, and home insurance |
| Mutual Benefits Assurance | Agric, group life, and fire |
Always confirm with NAICOM for the updated list.
Conclusion
Nigeria’s insurance industry is expanding—but so are scams. Don’t let the promise of cheap premiums or fast payouts cloud your judgment. By staying informed and verifying before you trust, you can protect yourself, your finances, and your future.
Remember, any company not listed with NAICOM is not authorized to sell insurance in Nigeria. Take the time to investigate and consult professionals when unsure.
✅ Final Checklist to Spot Fake Insurance Companies:
- Not listed on NAICOM
- Poor website or no online presence
- Unrealistic promises
- Unverifiable contact details
- Vague or suspicious policy documents
- Demands for personal account transfers
📌 Need Help?
Have doubts about a company? Reach out to NAICOM directly or consult a licensed insurance broker. Better safe than sorry.
