The National Insurance Commission (NAICOM) has set the starting line for the operations of Insurtech businesses in Nigeria with guidelines rolled out for ‘partnering insurtech’, ‘standalone insurtech’ and already existing ‘arrangement classified as insurtech.’ The guidelines, effective from August 1, 2025, were borne out of extensive stakeholder consultation and engagement designed to provide a clear and unified regulatory framework for the licensing, operations, and supervision Insurtech firms in Nigeria.
However, the regulator roar is clear for several risks, off limits, they are no go areas for Insurtech of all forms. They are excluded from transacting 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.
NAICOM statement cleared that the guidelines aim to foster innovation that can lead to the development of new and innovative insurance products and services. It would also ensure consumer protection and improve consumer experience, prioritizing consumer interests and providing better services.
The guidelines the Commission stated provide clarity on regulatory requirements, reducing uncertainty and ambiguity and; help build trust and confidence in the Insurtech sector, driving growth and adoption. It would also advance digital transformation within the Nigerian insurance sector.
The regulator assembled several key objectives to include promoting the growth and development of Insurtech in Nigeria; establishing regulatory standards for Insurtech setup and operations and, encouraging responsible innovation while safeguarding consumer interests.
Also infused are, defining general product features specific to Insurtech, providing a licensing structure for both Partnering and Standalone Insurtech firms. It would facilitate the transition of eligible operators into fully licensed standalone Insurtech entities. This new space in the insurance market the Commission cleared would support Nigeria’s broader digital economy and fintech ecosystem.
On application specifics NAICOM cleared that Partnering Insurtech would be permitted to transact specific classes of insurance in collaboration with licensed insurers; while Standalone Insurtech would 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.
Prospective operators the statement said, must submit applications in accordance with the procedures outlined in Schedule I of the Guidelines. However, NAICOM stated it reserves the right to grant licenses with conditions deemed necessary under existing laws and this new regulatory framework.
Besides, Insurtech firms are required to 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.
It made it clear that disputes between Insurtechs and partner insurers must first follow arbitration protocols outlined in their agreements before approaching NAICOM. Consumers are advised to refer unresolved issues from insurance transactions directly to the Commission for review and resolution.
For all existing insurance institutions and Insurtech firms operating under any arrangement classified as Insurtech the Commission demands full compliance with the Guidelines within 30 days of the effective date.
