In a decisive move to regulate and encourage innovation in Nigeria’s insurance technology sector, the National Insurance Commission (NAICOM) has issued operational guidelines for Insurtech firms, with full implementation scheduled to begin on August 1, 2025.
The long-anticipated framework provides a clear regulatory structure for licensing, supervision, and business operations—marking a significant shift from the unregulated growth that has characterized the industry in recent years.
A New Chapter for Digital Insurance
For years, Insurtech startups in Nigeria have operated in a grey area—partnering informally with traditional insurers while pushing boundaries through digital platforms. That era is now coming to a close.
“These new rules are a game-changer,” said, a fintech policy analyst. “For the first time, Insurtech companies have a definitive legal and operational framework. It’s a huge step toward building a credible digital insurance market.”
NAICOM’s guidelines follow extensive consultations with stakeholders and are part of a broader effort to align insurance operations with Nigeria’s digital economy goals.
What the Guidelines Cover
The guidelines aim to balance innovation with consumer protection, with objectives that include:
- Promoting Insurtech-led growth in the insurance sector
- Providing licensing clarity for both new and existing operators
- Enhancing the quality of customer service and consumer trust
- Encouraging responsible innovation in product design and delivery
- Strengthening Nigeria’s position in the global fintech and Insurtech space
“These policies aren’t just about compliance, they’re about confidence,” said Celestine Ukpong, an insurance economist and investor. “Both consumers and investors need to know that the ecosystem is safe, structured, and scalable.”
Two Types of Insurtech Operators Recognized
NAICOM has categorized Insurtech firms under two distinct models:
- Partnering Insurtechs: These companies work with licensed insurers to deliver specific insurance services using digital platforms.
- Standalone Insurtechs: These are independently licensed firms that can operate on their own, except in certain sensitive areas such as Oil & Gas, Marine and Aviation, Retirement Annuities, and government asset insurance.
Firms seeking to operate under either category must follow application procedures outlined in Schedule I of the guidelines. NAICOM also reserves the right to impose additional conditions as necessary.
Strict Compliance Requirements
The new rules come with high expectations. All Insurtech firms must meet defined standards covering:
- Risk management
- Investment practices
- Outsourcing protocols
- Actuarial and reporting requirements
“These are not just paperwork exercises,” warned, a Lagos-based digital insurance startup. “We’re talking about systems that will shape how we manage customer data, claims processing, and capital adequacy. It’s a serious upgrade.”
Dispute Resolution & Consumer Rights
In a notable addition, NAICOM has mandated that any disputes between Insurtechs and their insurer partners must be resolved through arbitration as per agreed contracts. For consumers, unresolved complaints can be taken directly to NAICOM for resolution.
“This reinforces NAICOM’s dual role as both a regulator and a consumer advocate,” said Abdul Dayo, insurance investor savvy. “It puts customer experience at the heart of Insurtech growth.”
Compliance Deadline: August 31
All Insurtechs currently operating in Nigeria, whether through informal partnerships or as tech-enabled brokers, have 30 days from August 1 to comply with the new guidelines. Firms that fail to meet the deadline risk regulatory action.
“It’s not business as usual anymore,” Dayo noted. “There’s now a clear structure, and those who want to play in this space must step up.”
For Further Details:
- Website: www.naicom.gov.ng
- Email: ihub@naicom.gov.ng
- Phone: +234 913 392 3456
As Nigeria continues its journey toward a fully digital financial ecosystem, NAICOM’s Insurtech guidelines are being hailed as a bold and timely intervention—one that may finally unlock the true potential of tech-driven insurance services for millions.
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