The National Insurance Commission (NAICOM) on Thursday announced the official issuance of operational guidelines for Insurance-technology businesses in Nigeria.
The issuance of the guidelines, which followed extensive consultations and engagement with stakeholders, would become effective from August 1, 2025.
The Commission said the guidelines were designed to provide a clear and unified regulatory framework for the licensing, operations, and supervision of insurance and technology firms in Nigeria.
The aims of the guidelines include fostering innovation that could lead to the development of new and innovative insurance products and services; ensuring consumer protection and improve consumer experience, prioritizing consumer interests and providing better services.
Others include the provide clarity on regulatory requirements, reducing uncertainty and ambiguity; helping to build trust and confidence in the Insurance and technology sector, driving growth and adoptionnas well as advancing digital transformation within the Nigerian insurance sector
The key objectives of the new guidelines include promoting the growth and development of Insurance and technology in Nigeria;
establishing regulatory standards for Insurance and tech setup and operations, and encouraging responsible innovation, while safeguarding consumer interests.
Other objectives include defining general product features specific to Insurance and technology; providing a licensing structure for both partnering and standalone Insurtech firms; facilitating the transition of eligible operators into fully licensed standalone Insurance and technology entities as well as supporting Nigeria’s broader digital economy and fintech ecosystem
Some of the approved application categories include partnering Insurance and technology: permitted to transact specific classes of insurance in collaboration with licensed insurers.
On stand-alone Insurance technology businesses, the Commission said, has been permitted to 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.
To qualify for the application under the guidelines, prospective operators must submit applications in accordance with the procedures outlined in Schedule I, although NAICOM reserves the right to grant licenses with conditions deemed necessary under existing laws and the new regulatory framework.
The guidelines require insurance and technology firms to comply with the provisions related to risk management, investment practices, actuarial standards, outsourcing, and other key operational parameters as detailed in the Commission’s Prudential Guidelines.
Besides, disputes between Insurance and technology firms and partner insurers must first follow arbitration protocols outlined in their agreements before approaching NAICOM, while consumers may refer unresolved issues from insurance transactions directly to the Commission for review and resolution.
The guidelines stipulate that all existing insurance institutions and firms operating under any arrangement classified as insurance and technology are to fully comply with these guidelines within 30 days of the effective date.
