NAICOM Gives Insurtech Firms 30 Days To Comply With New Guidelines

By Sola Alabadan

The National Insurance Commission (NAICOM) has given Insurtech Firms a period of 30 days expiring on August 30, to comply with the new operational guidelines for Insurtech businesses in Nigeria, following extensive stakeholder consultation and engagement.
The guidelines, effective from August 1, 2025, are designed to provide a clear and unified regulatory framework for the licensing, operations, and supervision of Insurtech firms in Nigeria.

The guidelines aim to foster innovation that can lead to the development of new and innovative insurance products and services, as well as to ensure consumer protection and improve consumer experience, prioritising consumer interests and providing better services.
It is also intended to provide clarity on regulatory requirements, reduce uncertainty and ambiguity, whilst also helping to build trust and confidence in the Insurtech sector, driving growth and adoption.
Besides, the guidelines aim to dvance digital transformation within the Nigerian insurance sector.
According to NAICOM, the key objectives of the guidelines include to promote the growth and development of Insurtech in Nigeria and equally to establish regulatory standards for Insurtech setup and operations.
The guidelines are also to encourage responsible innovation while safeguarding consumer interests, as well as to define general product features specific to Insurtech.
Other objectives of the guidelines are to provide a licensing structure for both Partnering and Standalone Insurtech firms, whilst facilitating the transition of eligible operators into fully licensed standalone Insurtech entities and supporting Nigeria’s broader digital economy and fintech ecosystem.

The guidelines are applicable to Partnering Insurtech that are permitted to transact specific classes of insurance in collaboration with licensed insurers and Standalone Insurtech that are 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.

Prospective operators are required to submit applications in accordance with the procedures outlined in Schedule I of the Guidelines,even as NAICOM reserves the right to grant licenses with conditions deemed necessary under existing laws and this new regulatory framework.

Insurtech firms are 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.

Where there are disputes between Insurtechs and partner insurers, it must first follow arbitration protocols outlined in their agreements before approaching NAICOM.
Nonetheless, consumers are at liberty to refer unresolved issues from insurance transactions directly to the Commission for review and resolution.