Nigeria’s insurance landscape is on the verge of a digital revolution as technology firms—popularly known as InsurTechs—push to secure operational licences from the National Insurance Commission (NAICOM) to distribute and manage insurance products through digital platforms.
So far, Mp-Platform Ltd, Insurance Hub Nigeria Ltd, and P2Vest Tech Ltd have obtained NAICOM’s approval to operate, while CBI InsureTech Ltd and WRAPA InsureTech Ltd are currently awaiting regulatory clearance.
These emerging players plan to leverage the Insurance Industry Reform Act (NIIRA) 2025, which formally recognizes technology companies as distribution partners to insurance providers. The law is expected to drive product innovation, deepen insurance penetration, and make policies more accessible to Nigeria’s underinsured population.
Digital Aggregators to Transform Insurance Access
The firms are seeking licences to operate as web aggregators, enabling them to offer side-by-side comparisons of insurance products from multiple providers, much like fintech platforms do for banking and loans.
According to NAICOM, these aggregators will serve as regulated intermediaries, ensuring transparency, fair representation, and accurate product information to help consumers make informed decisions online.
Government Pushes for Inclusive Insurance
Speaking during the West African Insurance Companies Association (WAICA) Education Conference in Abuja, Doris Uzoka-Anite, Minister of State for Finance, emphasized that insurance must go beyond urban markets to reach everyday Nigerians — from farmers and market women to artisans and small business owners.
“Insurance will achieve its true impact only when it reaches everyone,” she said. “By promoting microinsurance, digital channels, and parametric products that pay out instantly based on verified data, we can expand coverage, deepen financial inclusion, and strengthen resilience at the grassroots.”
NAICOM’s New Framework for InsurTechs
Following months of industry consultations, NAICOM recently issued operational guidelines for InsurTech businesses, which came into effect on August 1, 2025. The guidelines create a unified framework for licensing, operations, and supervision of technology-driven insurance providers.
Olusegun Omosehin, Commissioner for Insurance, described the NIIRA 2025 as a transformative milestone for Nigeria’s financial services sector.
“The NIIRA is a catalyst for innovation,” Omosehin said. “It enables the development of new products, modern distribution channels, and elevates consumer protection to unprecedented levels.”
The new framework outlines a dual structure:
- Partnering InsurTechs, which can distribute specific classes of insurance in collaboration with licensed insurers; and
- Standalone InsurTechs, which can sell approved categories of insurance independently—excluding special risks such as oil and gas, marine, aviation, retirement annuity, and government asset insurance.
InsurTechs must also comply with NAICOM’s prudential and operational guidelines, covering areas like risk management, investment practices, actuarial standards, and outsourcing.
All firms operating under any InsurTech arrangement have until September 30, 2025, to fully comply with the new regulations.
Insurance Industry Shows Strong Growth
NAICOM’s regulatory reforms come at a time when Nigeria’s insurance industry is experiencing robust expansion.
In the second quarter (Q2) of 2025, the sector’s gross written premium (GWP) surged to a record ₦1.213 trillion, reflecting a 49.3% growth compared to the same period in 2024.
Total industry assets also climbed to ₦4.4 trillion in Q2 2025, up from ₦2.3 trillion a year earlier — signaling renewed investor confidence and stronger capitalization across the insurance ecosystem.
Industry analysts say that with the entrance of digital aggregators and InsurTech partnerships, the market could see massive adoption of microinsurance and instant claims products, mirroring the fintech-driven transformation that reshaped Nigeria’s banking sector.
