The National Insurance Commission (NAICOM) has issued operational guidelines for Insurtech businesses in Nigeria, marking a significant step toward regulating and fostering digital innovation in the country’s insurance industry.
According to a statement released by the Commission, the guidelines are set to take effect from August 1, 2025. This move follows a series of stakeholder engagements and is aimed at establishing a harmonised regulatory environment for emerging insurance technology operators.
NAICOM stated that the new framework is intended to streamline the licensing, operation, and supervision of Insurtech firms in Nigeria. It is also expected to enhance innovation in the insurance sector, strengthen consumer protection, and build trust in digital insurance offerings.
The Commission noted that the guidelines are designed to encourage the development of innovative insurance products and services while safeguarding the interests of consumers by improving service delivery and regulatory clarity. It added that by reducing uncertainty and defining operational standards, the guidelines aim to boost confidence in Insurtech operations and promote the overall digital transformation of Nigeria’s insurance landscape.
Some of the key objectives outlined in the framework include promoting the growth of Insurtech in Nigeria, establishing regulatory standards for the setup and operations of such firms, supporting responsible innovation, and defining product features unique to the Insurtech model. The guidelines also provide a licensing framework for two categories of operators: Partnering Insurtech and Standalone Insurtech entities.
Under the new structure, Partnering Insurtechs will be permitted to conduct specific classes of insurance business in partnership with already licensed insurers. Standalone Insurtech firms, on the other hand, will be authorised to transact insurance categories specified in their licences, excluding high-risk and specialised segments such as Oil and Gas Insurance, Marine and Aviation Insurance, Retirement Life Annuity, and insurance coverage for government assets and liabilities across Ministries, Departments, and Agencies (MDAs).
NAICOM also specified that applicants must follow the procedures detailed in Schedule I of the guidelines. The Commission retains the authority to issue licences with conditions it deems necessary under the applicable laws and the new regulatory framework.
Regarding prudential and market conduct obligations, the Commission stressed that Insurtech firms must comply with risk management standards, investment practices, actuarial procedures, outsourcing requirements, and other operational benchmarks as prescribed in the Commission’s Prudential Guidelines.
In terms of dispute resolution, NAICOM stated that conflicts between Insurtechs and their partner insurers must be resolved through arbitration procedures agreed upon in their contractual arrangements before escalating to the Commission. However, consumer disputes arising from insurance transactions may be forwarded directly to NAICOM for resolution if not satisfactorily addressed.
Furthermore, NAICOM directed that all existing insurance firms and Insurtech operators currently engaged in any Insurtech-related arrangements must comply with the new guidelines within 30 days from the effective date of implementation.
The release of these guidelines signifies a major regulatory milestone as Nigeria positions itself to embrace digital transformation in insurance while safeguarding consumer interests and ensuring industry-wide compliance.
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