The National Insurance Commission (NAICOM) has introduced a new regulatory framework aimed at guiding the operations of Insurtech firms in Nigeria, in a move designed to accelerate digital innovation and enhance consumer protection across the insurance industry. Effective August 1, 2025, the guidelines outline licensing protocols, operational boundaries, and compliance requirements for firms leveraging technology to deliver insurance services. Insurtech, short for insurance technology, refers to digital platforms that use data analytics, automation, and personalized tools to improve how consumers access insurance.
According to NAICOM, the new framework follows “extensive consultation” with stakeholders and seeks to balance innovation with regulatory oversight.
“These guidelines will promote innovation, enhance consumer protection, and support digital transformation in Nigeria’s insurance sector,” the Commission said in a statement. “They reduce regulatory uncertainty, foster trust, and enable the development of tailored insurance products and services.”
Under the rules, Insurtech operators will fall into two categories: partnering firms that work with licensed insurers on specific insurance classes, and stand-alone firms that obtain independent licenses but are restricted from handling high-risk areas like oil and gas, marine, aviation, annuities, and government-related assets.
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To operate legally, firms must meet specific licensing requirements and adhere to standards covering areas such as risk management, outsourcing, actuarial operations, and data governance. NAICOM also retains the authority to introduce additional conditions on a case-by-case basis.
To ensure fair practices, NAICOM has introduced a mandatory arbitration process to resolve disputes between Insurtechs and traditional insurers. Policyholders can also escalate unresolved complaints to the Commission for direct intervention.
All existing operators have been given a 30-day window, starting August 1, to align with the new regulatory expectations. The Commission noted that the move is part of broader efforts to deepen insurance penetration, encourage innovation, and foster trust in a rapidly evolving financial ecosystem.
