In a major step toward modernizing Nigeria’s insurance industry, the National Insurance Commission (NAICOM) has unveiled a comprehensive set of guidelines to regulate Insurtech operations nationwide.
The new framework, which takes effect on August 1, 2025, aims to streamline licensing, bolster consumer protection, and accelerate digital innovation in the sector.
Insurtech, short for insurance technology, uses digital platforms and analytics to reimagine traditional insurance models.
By leveraging automation, data-driven risk assessments, and personalized policy offerings, the movement is reshaping how Nigerians access and experience insurance services.
Extensive Consultation with Industry Stakeholders
Announcing the guidelines in Lagos on Wednesday, NAICOM said the policy followed “extensive consultation” with industry stakeholders and reflects its commitment to fostering responsible innovation.
“These guidelines will promote innovation, enhance consumer protection, and support digital transformation in Nigeria’s insurance sector,” the Commission stated.
“They reduce regulatory uncertainty, foster trust, and enable the development of tailored insurance products and services.”
Clear Structure for Insurtech Operators
Under the new rules, NAICOM has formally recognized two distinct categories of Insurtech entities:
- Partnering Insurtechs – technology firms permitted to transact select classes of insurance in partnership with licensed insurers.
- Standalone Insurtechs – firms that hold independent licenses to operate within approved insurance classes but are restricted from offering high-risk products. These include oil and gas, marine and aviation, retirement life annuities, and coverage for government assets and liabilities.
Applicants must follow strict licensing protocols outlined in the new framework. NAICOM reserves the right to impose additional licensing conditions where necessary.
In addition, Insurtech firms will be required to adhere to prudential and market conduct regulations, including rules governing risk management, actuarial practices, investment decisions, outsourcing arrangements, and data integrity—all aligned with the Commission’s existing regulatory standards.
Dispute Resolution and Compliance Deadline
To safeguard fair dealings between Insurtechs and traditional insurers, NAICOM has instituted a mandatory arbitration process for resolving disputes before matters can be escalated to the regulator.
Consumers may also report unresolved issues directly to NAICOM for intervention, reinforcing the Commission’s role as a protector of policyholder interests.
All existing Insurtech operators and insurance institutions have been instructed to achieve full compliance within 30 days of the August 1 rollout.
With these guidelines, NAICOM aims to pave the way for broader inclusion, greater transparency, and higher efficiency in Nigeria’s evolving insurance ecosystem.
