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The National Insurance Commission (NAICOM) has introduced a detailed regulatory framework to govern Insurtech activities in Nigeria, effective from August 1, 2025. These guidelines aim to modernize the insurance sector by providing clarity on licensing, operations, and supervisory expectations for technology-driven insurance firms.
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Following extensive industry consultations, NAICOM stated the guidelines are intended to foster innovation, enhance consumer protection, and accelerate Nigeria’s digital transformation in insurance.
Key Objectives: Innovation, Compliance, and Consumer Protection
NAICOM emphasized that the new Insurtech rules are designed to:
- Promote responsible innovation
- Reduce regulatory ambiguity
- Boost public trust in digital insurance
- Encourage the creation of new insurance products
- Define Insurtech-specific product structures
The regulatory framework also provides a clearly defined licensing pathway for Insurtech firms—both those partnering with traditional insurers and those operating independently.
Two Categories of Insurtechs Defined
According to NAICOM:
- Partnering Insurtechs are allowed to offer specified classes of insurance in collaboration with licensed insurers.
- Standalone Insurtechs may operate independently but are restricted from underwriting special risk classes such as oil & gas, marine, aviation, retirement annuities, and government-related insurance.
Prospective Insurtech operators must follow a defined application process and meet conditions as specified by NAICOM.
Strict Operational Standards and Compliance Rules
Under the new guidelines, Insurtech firms must comply with NAICOM’s prudential and market conduct rules, including:
- Risk management
- Investment protocols
- Actuarial procedures
- Outsourcing controls
- General operational and governance standards
Dispute resolution mechanisms have also been established, requiring arbitration between Insurtechs and their insurer partners before approaching NAICOM. Additionally, consumers can report unresolved complaints directly to the Commission.
30-Day Compliance Mandate for Existing Operators
NAICOM has directed all current insurance institutions and Insurtech companies to fully comply with the new guidelines within 30 days of the effective date (August 1). The Commission retains the authority to impose specific licensing conditions where necessary.
