NAICOM Releases Operational Guidelines for Insurtech Firms in Nigeria

The National Insurance Commission (NAICOM) has officially unveiled a comprehensive set of guidelines to regulate Insurtech operations in Nigeria, marking a major step in modernizing the country’s insurance landscape.

The new regulatory framework, which takes effect on August 1, 2025, is the outcome of extensive stakeholder engagement and is designed to provide clarity on the licensing, operations, and supervision of Insurtech firms operating within Nigeria.

According to NAICOM, the guidelines aim to foster innovation, protect consumers, and accelerate the digital transformation of the insurance industry. The initiative is expected to create a more transparent and efficient environment for Insurtech companies, while also boosting investor and consumer confidence.

Key Objectives of the Guidelines

According to NAICOM, the key objectives of the guidelines are to: Promote responsible innovation and the development of digital insurance products; Establish clear operational standards for Insurtech firms; Ensure consumer protection and enhance customer experience; Clarify regulatory expectations and licensing requirements and Support Nigeria’s broader fintech and digital economy strategy

NAICOM highlighted that the framework will also help define general product features for Insurtech firms and provide a pathway for eligible operators to transition into fully licensed standalone entities.

Licensing Categories

On licensing, the Commission stated that the guidelines outline two distinct categories of Insurtech firms:

Partnering Insurtechs – These companies can offer specific classes of insurance in partnership with existing licensed insurers.

Standalone Insurtechs – These firms may transact directly under a dedicated license but are restricted from offering certain high-risk insurance classes, including oil and gas, marine and aviation, retirement life annuity, and government-related insurance for ministries, departments, and agencies.

Application and Compliance

According to the Commission, all prospective operators are required to follow the application process as detailed in Schedule I of the guidelines. NAICOM retains the authority to issue licenses with additional conditions as deemed necessary under applicable laws.

All existing insurance institutions and any firms currently operating under Insurtech models must fully comply with the new rules within 30 days of the effective date.

Prudential and Market Conduct Rules

The guidelines impose strict compliance obligations related to: Risk management practices; Investment and actuarial standards; Outsourcing procedures; Consumer protection provisions

These requirements must be adhered to in line with NAICOM’s existing Prudential Guidelines.

Dispute Resolution

For conflicts between Insurtech firms and their insurance partners, the guidelines require initial arbitration based on the terms of their agreements. In unresolved cases, or in matters involving consumers, NAICOM will serve as the final arbiter.

Driving Sectoral Transformation

By formalizing the regulatory environment for Insurtechs, NAICOM aims to align Nigeria’s insurance industry with global standards and digital realities. The Commission reiterated its commitment to building a more innovative, inclusive, and technology-driven insurance sector capable of supporting national economic growth.

Industry stakeholders are expected to begin implementing the new framework immediately, with the aim of ensuring stronger compliance, improved service delivery, and accelerated innovation across Nigeria’s insurance ecosystem.