By NIyi JACOBS
The National Insurance Commission (NAICOM) has released a comprehensive set of guidelines to regulate Insurtech businesses in Nigeria, marking a significant move to modernize the country’s insurance landscape and promote safe, innovative practices within the digital ecosystem. The new regulatory framework takes effect from August 1, 2025.
According to NAICOM, the guidelines were developed following extensive stakeholder consultations and are aimed at providing clarity, improving consumer protection, and accelerating digital transformation across the insurance sector. The Commission said the new rules will foster innovation that leads to the creation of new insurance products and services, ensure improved consumer experience, and help build trust and confidence in the Insurtech space.
The framework introduces two main categories of Insurtech operators. Partnering Insurtechs will be allowed to transact specified classes of insurance products in collaboration with licensed insurers. Standalone Insurtechs, on the other hand, will operate independently and be licensed to offer various categories of insurance products, except for high-risk areas such as oil and gas, marine and aviation, retirement life annuity, and insurance for government assets and liabilities involving ministries, departments, and agencies.
To operate, prospective Insurtech firms must submit applications in accordance with the procedures detailed in Schedule I of the new guidelines. NAICOM reserves the right to issue licenses subject to conditions it deems necessary, in line with existing laws and regulatory oversight.
The Commission emphasized that licensed Insurtech firms must adhere to all prudential and market conduct requirements contained in its broader Prudential Guidelines. These include expectations around risk management systems, investment practices, actuarial standards, outsourcing policies, and other operational parameters designed to uphold financial soundness and consumer safety.
The guidelines also introduce a dispute resolution mechanism. In cases of conflict between Insurtech firms and their insurance partners, parties are required to exhaust arbitration procedures outlined in their agreements before escalating to the Commission. For consumers, unresolved issues stemming from insurance transactions can be taken directly to NAICOM for resolution.
All existing insurance firms and Insurtech operators currently transacting business under any model falling within the Insurtech category must fully comply with the new guidelines within 30 days of the effective date. This means full compliance must be achieved by August 31, 2025.
