Insurance is supposed to offer protection and peace of mind—but only when you’re dealing with a legitimate provider. Unfortunately, in Nigeria, some fraudulent agents and companies pretend to offer insurance, only to vanish when it’s time to pay claims.

To avoid being a victim of such scams, it’s crucial to know how to distinguish between real and fake insurance providers. This guide outlines the key warning signs to watch for.

1. Confirm NAICOM Accreditation

Your first step should always be to verify whether the insurer is officially licensed by the National Insurance Commission (NAICOM).

✅ Visit naicom.gov.ng to see the list of approved insurance companies.

If the company or agent you’re dealing with doesn’t appear there, that’s a major red flag—walk away immediately.

2. Watch Out for Too-Good-To-Be-True Offers

Be cautious if a provider offers:

• Extremely cheap premiums
  
  
• Huge coverage at little or no cost
  
  
• Quick sign-up with zero documentation
  
  

These are typical bait tactics used by fraudsters. Remember: if an offer sounds too good to be true, it probably is.

3. No Physical Office or Traceable Contact

A reputable insurance company should have a physical office and professional contact channels—not just a WhatsApp number or Instagram page.

Do a quick check:

• Visit their website—does it list a real address and functioning customer service line?
  
  
• Call the number—does someone respond professionally?
  
  
• Verify the company’s registration on the Corporate Affairs Commission (CAC) portal.
  
  

If everything is vague or unverifiable, it’s likely a scam.

4. Reluctance to Provide Proper Documentation

Fake insurers often avoid issuing actual policy documents or receipts. Even when they do, the documents may be vague and lack specific terms.

A legitimate insurer will provide you with:

• A valid policy number
  
  
• A clear breakdown of your premium
  
  
• Detailed terms, coverage, exclusions, and claim procedures
  
  

If these aren’t provided up front, don’t proceed.

5. Pressure to Act Quickly

Scammers use urgency as a tactic. If someone keeps pushing you to pay “immediately” or warns the offer will “expire in one hour,” that’s a strong warning sign.

Real insurance providers encourage informed decisions, not rushed ones.

6. Weak Online Presence and Negative Reviews

Before committing, do some online research. Look into the company’s:

• Website – Is it well-designed, secure (https://), and informative?
  
  
• Social media – Are their pages active and professional?
  
  
• Customer reviews – Are there complaints about unpaid claims or scam warnings?
  
  

If multiple reviews point to shady practices or unfulfilled claims, it’s best to stay away.

7. Suspicious Agents with No Credentials

Some fraudsters pose as insurance agents without being authorized by any licensed provider or by NAICOM.

How to protect yourself:

• Ask which insurance company they work for
  
  
• Call the company directly to verify the agent’s identity
  
  
• Make all payments to the company’s official account—never to a personal bank account
  
  

Common Phrases Used by Scammers

Be extra cautious if you hear any of these lines:

🚩 “No paperwork needed—just transfer the money.”
🚩 “It’s a government-backed deal, but it’s not public yet.”
🚩 “This is a secret offer—don’t tell anyone.”
🚩 “We’ll send your policy later—just pay first.”

These are all signs of a likely scam.

What to Do If You’ve Been Scammed

If you suspect you’ve fallen victim to a fake insurance provider:

• Report the issue to NAICOM
  
  
• File a complaint with the EFCC or Nigerian Police
  
  
• Share your experience online to help warn others
  
  

Final Thoughts

Insurance is a wise investment—but only when sourced from a reputable, licensed company. Don’t let desperation or the appeal of low prices lead you into the hands of scammers.

Take your time. Do your research. Always verify an insurance provider before signing up or making any payments. Protect yourself first—so your insurance can protect you later.