By Iluole Iwenekha
The National Insurance Commission (NAICOM) has released comprehensive operational guidelines for Insurtech firms in Nigeria, with the aim of promoting innovation, enhancing consumer protection, and accelerating digital transformation in the insurance sector.
The guidelines, which come into effect on August 1, 2025, are expected to reshape the regulatory landscape for technology-driven insurance solutions. According to NAICOM, the new framework seeks to “foster innovation that can lead to the development of new and innovative insurance products and services,” while ensuring that such advancements are implemented in a responsible and consumer-focused manner.
In a press statement, the Commission said the guidelines will also help to “provide clarity on regulatory requirements, reducing uncertainty and ambiguity,” and “help build trust and confidence in the Insurtech sector, driving growth and adoption.” NAICOM noted that the regulatory move aligns with its broader mandate to protect policyholders and support the evolution of Nigeria’s insurance market in line with global trends.
Among the core objectives of the guidelines are the promotion of responsible innovation, the establishment of regulatory standards for Insurtech operations, and the provision of a licensing structure for both Partnering and Standalone Insurtech firms. The Commission explained that this would “facilitate the transition of eligible operators into fully licensed standalone Insurtech entities” and support Nigeria’s digital economy.
The framework distinguishes between two categories of operators: Partnering Insurtechs, which will collaborate with existing insurers to offer specific classes of insurance; and Standalone Insurtechs, which may operate independently within approved categories, excluding special risk businesses such as oil and gas, marine, aviation, retirement annuity, and government asset insurance.
“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,” NAICOM warned, emphasizing the need for immediate alignment with the new rules.
The guidelines also lay out clear expectations on prudential and market conduct standards, including risk management, actuarial practice, outsourcing, and investment strategy. For conflict resolution, the Commission stipulated that “disputes between Insurtechs and partner insurers must first follow arbitration protocols outlined in their agreements before approaching NAICOM,” while consumers may report unresolved complaints directly to the Commission for intervention.
By introducing these measures, NAICOM aims to stimulate innovation while ensuring the Nigerian insurance industry remains safe, transparent, and inclusive. “These guidelines are a key step in supporting Nigeria’s broader digital economy and fintech ecosystem,” the statement concluded.
