The National Insurance Commission (NAICOM) has officially issued operational guidelines for Insurtech businesses in Nigeria, following extensive stakeholder consultation and engagement. A statement from the Commission confirm this development.
The guidelines, effective from August 1, 2025, were designed to provide a clear and unified regulatory framework for the licensing, operations, and supervision of Insurtech firms in Nigeria.
The guidelines aim to: Foster innovation that can lead to the development of new and innovative insurance products and services, ensure consumer protection and improve consumer experience, prioritizing their interests and providing better services.
Others are: To provide clarity on regulatory requirements, reducing uncertainty and ambiguity, help build trust and confidence in the Insurtech sector, driving growth and adoption, as well as advance digital transformation within the Nigerian insurance sector.
According to NAICOM, the objectives of the guidelines are: To promote the growth and development of Insurtech in Nigeria, to establish regulatory standards for Insurtech setup and operations, to encourage responsible innovation while safeguarding consumer interests. Others are: Defining general product features specific to Insurtech, providing a licensing structure for both Partnering and Standalone Insurtech firms, facilitating the transition of eligible operators into fully licensed standalone Insurtech entities, and supporting Nigeria’s broader digital economy and fintech ecosystem.
The application categories are: Partnering Insurtech: These are permitted to transact specific classes of insurance in collaboration with licensed insurers.
Standalone Insurtech: These are permitted to transact the categories of insurance as may be specified in its license, excluding special risk products such as oil and gas insurance, marine and aviation Insurance, retirement Life annuity, and insurances of government assets and liabilities for ministries, departments, and agencies.
On application and eligibility, prospective operators must submit applications in accordance with the procedures outlined in Schedule I of the Guidelines. NAICOM said it reserves the right to grant licenses with conditions deemed necessary under existing laws and this new regulatory framework.
Prudential and Market Conduct Requirements: Here, insurtech firms must comply with provisions related to risk management, investment practices, actuarial standards, outsourcing, and other key operational parameters as detailed in the Commission’s Prudential Guidelines.
Dispute Resolution Mechanism: Disputes between Insurtechs and partner insurers must first follow arbitration protocols outlined in their agreements before approaching NAICOM. Consumers may refer unresolved issues from insurance transactions directly to the Commission for review and resolution.
The compliance deadline as stated by NAICOM, maintained that all existing insurance institutions and Insurtech firms operating under any arrangement classified as Insurtech must fully comply with these Guidelines within 30 days of the effective date. For more – www.naicom.gov.ng, [email protected]
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