Experts applaud regulatory clarity as Nigeria’s insurance regulator targets digital innovation and wider financial inclusion.
In a bold step toward modernizing Nigeria’s insurance landscape, the National Insurance Commission (NAICOM) has unveiled new operational guidelines tailored specifically for insurtech firms — a move expected to redefine the future of digital insurance in the country.
The guidelines, released this week, are aimed at providing a regulatory framework for insurance technology operators whose rapid growth has, until now, outpaced formal regulation. By introducing clear rules of engagement, NAICOM says it intends to encourage innovation while ensuring consumer protection and market integrity.
“This is a landmark moment for Nigeria’s insurance industry,” said, a financial technology researcher at the University of Lagos. “For too long, insurtech firms have operated in regulatory uncertainty. These guidelines not only provide structure but open the doors for real growth and trust-building.”
A Sector in Need of Structure
The Nigerian insurtech space has witnessed increased activity in recent years, with startups and traditional players experimenting with mobile-first platforms, usage-based coverage, and AI-driven underwriting. However, the absence of defined rules had created both risk and hesitation among potential investors and customers.
NAICOM’s new operational framework seeks to correct that imbalance. It sets out conditions for licensing, capital requirements, risk management, data governance, and digital platform supervision. It also offers guidance on emerging models such as microinsurance, on-demand coverage, and peer-to-peer schemes.
In a statement, NAICOM said:
“The objective of these guidelines is to support the responsible use of technology in insurance operations, while reinforcing consumer confidence and ensuring regulatory compliance across the board.”
The Commission emphasized that the guidelines are not intended to hinder innovation, but rather to ensure that the digital evolution of insurance happens within a safe and transparent ecosystem.
Industry Applause and Reflection
Industry stakeholders have welcomed the move with optimism. A co-founder of a leading insurtech startup in Lagos, described the release as “a win-win for regulators, operators, and consumers.”
“We’ve been operating in good faith, but we always knew regulation would eventually catch up,” he said. “Now that it’s here, we can confidently build new products, raise capital, and engage partners without second-guessing our compliance status.”
Similarly, insurance analyst, Celestine Ukpong noted that the guidelines would help attract foreign investors looking for stability in Nigeria’s financial technology space. “Investors typically want to see clear frameworks. With this step, NAICOM has made Nigeria’s insurtech sector more investible.”
Pushing Toward Financial Inclusion
Beyond regulation, NAICOM believes that technology holds the key to improving insurance penetration in Nigeria, which currently stands at less than 2 percent.
By enabling digital-first business models and microinsurance solutions, the Commission aims to reach underserved populations, particularly in rural areas where traditional insurance channels have struggled.
“The new guidelines should be seen as part of a broader digital transformation strategy,” said, Director of Policy at a Lagos-based insurance advocacy NGO. “This could finally be the push needed to bring insurance to the grassroots.”
What’s Next for Insurtech Firms?
NAICOM has indicated that the guidelines take immediate effect, but insurtech firms will be granted a transitional window to align their operations. The Commission is also expected to begin engagement sessions with operators to provide clarity and support implementation.
As the Nigerian insurance industry charts a new course, many agree that the real test will be in the execution.
“If this is followed through with consistent supervision and open dialogue with players, Nigeria may well become a leading insurtech hub in Africa,” added Ukpong.
For now, the message from NAICOM is clear: innovation is welcome, but it must be accountable, secure, and inclusive.
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