The National Insurance Commission (NAICOM) has rolled out operational guidelines for Insurtech businesses in Nigeria.
This is a step toward regulating and expanding digital innovation in the insurance sector.
The move which came after a series of stakeholder engagements NAICOM said is aimed at creating a unified regulatory environment for emerging insurance technology players.
According to a statement from NAICOM, the guidelines, which take effect from August 1, 2025, are designed to streamline the licensing, operation, and oversight of Insurtech firms operating in the country.
The regulatory framework is expected to stimulate innovation within the sector, improve consumer protection, and boost trust in digital insurance services.
The guidelines seek to encourage the development of new and creative insurance products and services, while ensuring that consumers receive enhanced service quality and fair treatment.
NAICOM noted that by setting clear regulatory requirements, it intends to remove ambiguity and create a more predictable business environment for prospective and existing Insurtech operators.
Among the broader goals of the guidelines is to contribute to Nigeria’s ongoing digital transformation in financial services. NAICOM believes the guidelines will strengthen the Insurtech ecosystem by providing a foundation for responsible innovation, thereby supporting the growth of the fintech and digital economy landscape.
The document lays out specific objectives including promoting Insurtech expansion in Nigeria, establishing standard procedures for Insurtech operations, and protecting the interests of consumers.
It also defines the nature and scope of insurance products that can be developed by Insurtech companies and introduces a structured licensing framework for both Partnering and Standalone Insurtech models.
Under the new regime, Partnering Insurtechs will be allowed to offer certain types of insurance products in collaboration with already licensed insurance companies.
Standalone Insurtechs, on the other hand, will be licensed to offer specified categories of insurance directly, with some exceptions. These exceptions include high-risk categories such as Oil and Gas Insurance, Marine and Aviation Insurance, Retirement Life Annuities, and insurance policies covering government assets and liabilities across Ministries, Departments, and Agencies.
Prospective operators are required to submit applications in line with the procedures stipulated in the new guidelines. NAICOM retains the discretion to issue licenses with conditions it deems necessary based on applicable laws and the new regulatory structure.
Licensed Insurtech companies will be expected to comply fully with the Commission’s Prudential Guidelines, including provisions relating to risk management, investment activities, actuarial practices, outsourcing arrangements, and other operational standards.
In situations where disputes arise between Insurtech firms and their insurance partners, the guidelines mandate that such conflicts must first go through arbitration processes as agreed upon in their partnership contracts.
However, in cases involving consumer complaints from insurance transactions, customers may escalate unresolved matters directly to NAICOM for review and resolution.
NAICOM has directed that all existing insurance entities and Insurtech firms currently operating under any form of Insurtech-related arrangement must align with the new guidelines within 30 days from the effective date.
