The National Insurance Commission (NAICOM) has introduced new operational guidelines to regulate Insurtech businesses in Nigeria, marking a significant step toward fostering innovation and digital transformation in the insurance sector.
Following extensive consultations with stakeholders, NAICOM announced that the new rules—set to take effect on August 1, 2025—aim to establish a unified regulatory framework for technology-driven insurance firms. The guidelines are designed to simplify the processes of licensing, oversight, and operations for Insurtech companies operating in the country.
According to NAICOM, the framework is intended to encourage innovation, enhance consumer protection, and build public trust in digital insurance offerings. It promotes the development of innovative insurance products and services while ensuring customers receive fair treatment and improved service delivery.
The Commission emphasized that the guidelines provide clarity and predictability for both existing and aspiring Insurtech players, creating a more stable environment for digital insurance operations.
Part of a broader push toward the digitalization of financial services in Nigeria, the new framework aims to bolster the Insurtech ecosystem and support the growth of the country’s fintech and digital economy. Key objectives include standardizing operational procedures, fostering Insurtech expansion, and safeguarding consumer interests.
The guidelines introduce two licensing categories: Partnering Insurtechs and Standalone Insurtechs. Partnering Insurtechs will be authorized to offer specific insurance products in collaboration with licensed insurers. Standalone Insurtechs, meanwhile, can directly offer approved insurance products, though they are restricted from handling high-risk sectors such as Oil and Gas, Marine and Aviation, Retirement Life Annuities, and insurance involving government assets and liabilities.
To operate under the new regime, prospective Insurtech firms must apply in accordance with the defined procedures. NAICOM reserves the authority to issue licenses with conditions it considers appropriate based on prevailing laws and regulatory requirements.
Licensed Insurtechs will be required to adhere to NAICOM’s Prudential Guidelines, covering areas such as risk management, investments, actuarial standards, outsourcing, and overall operational conduct.
The guidelines also provide mechanisms for conflict resolution. Disputes between Insurtechs and their insurance partners must be resolved through arbitration as per their contractual agreements. However, consumers can escalate unresolved complaints directly to NAICOM for intervention.
NAICOM has instructed all current insurance companies and Insurtech firms operating under any digital model to comply with the new guidelines within 30 days of the implementation date.
