NAICOM Releases Comprehensive Guidelines for Insurtech Operations in Nigeria
By Patience Ikpeme
The National Insurance Commission (NAICOM) has formally issued operational guidelines for Insurtech businesses in Nigeria, a move that follows extensive stakeholder consultation and engagement within the industry.
These guidelines, set to become effective on August 1, 2025, are designed to establish a clear and consistent regulatory framework for the licensing, operations, and supervision of Insurtech firms across the nation.
A statement from NAICOM revealed that the guidelines seek to foster innovation that can lead to the development of new and innovative insurance products and services.
They also aim to ensure consumer protection and improve consumer experience by prioritizing consumer interests and providing better services. The Commission expects the guidelines to provide clarity on regulatory requirements, thereby reducing uncertainty and ambiguity in the sector.
Ultimately, NAICOM anticipates that this framework will help build trust and confidence in the Insurtech sector, driving its growth and adoption, and further advancing digital transformation within the Nigerian insurance landscape.
The key objectives underpinning these guidelines include promoting the growth and development of Insurtech in Nigeria and establishing clear regulatory standards for Insurtech setup and operations.
The framework is also designed to encourage responsible innovation while simultaneously safeguarding consumer interests. It provides definitions for general product features specific to Insurtech and outlines a licensing structure for both Partnering and Standalone Insurtech firms.
Furthermore, the guidelines are intended to facilitate the transition of eligible operators into fully licensed standalone Insurtech entities and to support Nigeria’s broader digital economy and fintech ecosystem.
The guidelines classify applications into two main categories. The first is Partnering Insurtech, which permits firms to transact specific classes of insurance in collaboration with licensed insurers.
The second category is Standalone Insurtech, allowing firms to transact the categories of insurance as may be specified in their license, with the exception of 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.
Prospective operators are required to submit their applications in accordance with the procedures detailed in the Guidelines. NAICOM has stated that it retains the authority to grant licenses with any conditions deemed necessary under existing laws and this new regulatory framework.
Upon receiving a license, Insurtech firms must adhere to provisions related to risk management, investment practices, actuarial standards, outsourcing, and other key operational parameters as outlined in the Commission’s Prudential Guidelines.
The guidelines also lay out protocols for dispute resolution. Disputes between Insurtechs and their partner insurers must first follow the arbitration procedures specified in their agreements before escalating to NAICOM.
Consumers, however, are permitted to refer unresolved issues from insurance transactions directly to the Commission for review and resolution. All existing insurance institutions and Insurtech firms currently operating under any arrangement classified as Insurtech are mandated to fully comply with these Guidelines within 30 days of the effective date.
