NAICOM Issues Operational Guidelines For Insurtech Firms
The National Insurance Commission (NAICOM) has released a new set of operational guidelines for Insurtech companies in Nigeria, with effect from August 1, 2025, in a move aimed at regulating the fast-growing segment of the insurance industry.
The guidelines, unveiled after a series of consultations with industry stakeholders, are designed to provide a clear regulatory framework for the licensing, operation, and supervision of Insurtech firms across the country.
NAICOM said the new rules will help drive innovation, protect consumers, and promote transparency in digital insurance services, while supporting Nigeria’s broader transition toward a digitally driven financial ecosystem.
The guidelines apply to two categories of Insurtech operators: Partnering Insurtechs, which work in collaboration with licensed insurers, and Standalone Insurtechs, which operate independently under licences issued by the Commission.
However, Standalone Insurtechs are restricted from underwriting high-risk products such as oil and gas insurance, marine and aviation insurance, retirement life annuities, and insurance for government assets and liabilities.
According to the Commission, prospective operators must apply in line with procedures outlined in Schedule I of the document.
Licensed Insurtechs are expected to comply with prudential requirements, including risk management, investment practices, actuarial standards, and outsourcing rules, as part of ongoing supervision.
NAICOM also introduced a dispute resolution mechanism under which disagreements between Insurtechs and their partner insurers must first be handled through arbitration, as specified in their contractual agreements.
Consumers, however, may escalate unresolved complaints to the Commission for redress.
The commission said all existing Insurtech firms and insurance institutions operating within this framework must fully comply with the new guidelines within 30 days from the effective date.
The Commission said the new framework is intended to boost confidence in digital insurance products and ensure that innovation does not come at the expense of consumer protection.
NAICOM Issues Operational Guidelines For Insurtech Firms is first published on The Whistler Newspaper
