In a bold move to modernize Nigeria’s insurance landscape, the National Insurance Commission (NAICOM) has introduced sweeping guidelines to regulate Insurtech operations across the country. The new framework, which takes effect from August 1, 2025, is designed to simplify licensing procedures, enhance consumer protection, and foster digital innovation within the sector.
Insurtech—short for insurance technology—relies on digital platforms, automation, and data analytics to reimagine how insurance services are delivered. From personalized policies to efficient claims processing, the model is reshaping public access to insurance in Nigeria.
NAICOM, during an announcement in Lagos, described the policy as the result of “extensive consultation” with stakeholders and a clear demonstration of its commitment to responsible innovation. The Commission said the guidelines aim to reduce regulatory uncertainty, boost consumer trust, and accelerate the development of tailored insurance services.
The framework establishes two clear categories of Insurtech operators. The first, Partnering Insurtechs, are technology companies allowed to offer specific insurance services only through partnerships with licensed insurers. The second, Standalone Insurtechs, are independently licensed entities permitted to operate within approved insurance classes. However, they are restricted from offering high-risk insurance products such as oil and gas, marine and aviation, retirement life annuities, and coverage for government assets or liabilities.
To operate, applicants must undergo rigorous licensing procedures, with NAICOM retaining the authority to impose additional requirements when necessary. All Insurtech firms, regardless of category, must comply with the Commission’s prudential and market conduct rules covering areas such as risk management, actuarial policies, investment controls, outsourcing, and data protection.
To prevent conflicts and promote accountability, NAICOM has also established a mandatory arbitration mechanism to resolve disputes between Insurtechs and traditional insurers before regulatory escalation. Consumers with unresolved complaints may escalate their cases directly to the Commission.
All existing Insurtech firms and related insurance institutions are required to comply fully with the new regulations within 30 days of the rollout.
By laying out this clear regulatory structure, NAICOM hopes to increase trust, transparency, and inclusion in the Nigerian insurance ecosystem, while encouraging the responsible use of technology to deliver better outcomes for policyholders
