The National Insurance Commission (NAICOM) has formally issued comprehensive operational guidelines for Insurtech businesses in Nigeria, marking a significant milestone in the digital transformation of the country’s insurance industry. The new regulations, developed after extensive stakeholder consultations, will take effect from August 1, 2025.
According to NAICOM, the guidelines aim to establish a unified regulatory framework for the licensing, operation, and supervision of Insurtech firms, ensuring innovation, consumer protection, and regulatory clarity in the sector.
Objectives of the Guidelines
The Commission outlined several core objectives of the guidelines, including:
- Encouraging innovation in the development of modern insurance products and services.
- Strengthening consumer protection by enhancing service quality and prioritizing user interests.
- Providing regulatory clarity to reduce uncertainty for industry operators.
- Building trust and confidence in the Insurtech sector to boost adoption.
- Accelerating the digital transformation of Nigeria’s insurance industry.
In a statement, NAICOM emphasized that the guidelines are designed to support the growth and development of Insurtech in Nigeria, encourage responsible innovation, and define product features unique to digital insurance platforms.
Licensing Structure and Categories
The new framework introduces two categories of Insurtech operations:
- Partnering Insurtech Firms: These will operate in collaboration with licensed insurance companies and may transact specific classes of insurance.
- Standalone Insurtech Firms: These will be licensed to offer specified categories of insurance independently, excluding high-risk and specialized products such as oil and gas, marine and aviation insurance, retirement annuities, and insurance related to government assets and liabilities.
The guidelines also outline a licensing structure and a transition pathway for eligible partnering firms seeking to become fully licensed standalone Insurtech entities.
Application and Compliance Procedures
Prospective Insurtech operators are required to submit their applications in line with the procedures detailed in Schedule I of the Guidelines. NAICOM reserves the authority to issue licenses with conditions as deemed appropriate under existing laws and the new regulatory framework.
Insurtech companies must adhere to prudential and market conduct requirements, including:
- Risk management protocols
- Investment and actuarial standards
- Outsourcing policies
- Compliance with the Commission’s broader Prudential Guidelines
Dispute Resolution Mechanism
To handle conflicts efficiently, NAICOM has established a structured dispute resolution process. Disagreements between Insurtech firms and their partner insurers must first undergo arbitration as specified in their contracts. If unresolved, the matter may then be brought to NAICOM for further intervention. Consumers, meanwhile, are permitted to escalate unresolved transaction issues directly to the Commission.
Compliance Timeline
NAICOM has mandated that all existing Insurtech firms and insurance institutions operating under any Insurtech-related model must achieve full compliance within 30 days of the August 1, 2025 effective date.
The Commission stated that these guidelines are also aligned with broader national efforts to support Nigeria’s digital economy and fintech ecosystem, reinforcing the country’s commitment to innovation and regulatory modernization in financial services.
