The Nigerian insurance industry is undergoing a major transformation with the rollout of the Nigerian Insurance Industry Reform Act 2025 (NIIRA 2025) and the newly released Insurtech Operational Guidelines by the National Insurance Commission (NAICOM).
Together, these landmark reforms are expected to modernize the sector, boost insurance penetration, and drive innovation through technology, laying the groundwork for increased efficiency and consumer trust.
Signed into law by President Bola Ahmed Tinubu, NIIRA 2025 replaces the outdated Insurance Act of 2003. The law provides a comprehensive framework to strengthen regulatory oversight, attract investment, and enable the insurance industry to contribute more significantly to Nigeria’s target of becoming a $1 trillion economy.
“This is a new dawn for the industry,” said NAICOM, noting that the Act sets the pace for a dynamic and competitive insurance market aligned with global best practices.
In line with this reform agenda, NAICOM also issued detailed operational guidelines for Insurtech firms, effective August 1, 2025. The guidelines were developed after extensive stakeholder engagement and aim to provide clarity on licensing, operations, and compliance standards for technology-driven insurance companies.
Key Features of the Insurtech Guidelines:
- Defined Licensing Models:
- Partnering Insurtechs will collaborate with licensed insurers to offer selected products.
- Standalone Insurtechs may operate independently in approved insurance categories, excluding high-risk areas like oil & gas, marine, aviation, and government assets.
- Regulatory Clarity:
The framework outlines risk management requirements, investment conduct, actuarial standards, and outsourcing protocols to ensure responsible innovation. - Consumer Protection & Dispute Resolution:
Insurtechs must resolve disputes with partner insurers via arbitration, while unresolved consumer complaints may be escalated to NAICOM for review. - 30-Day Compliance Deadline:
All existing Insurtechs and firms operating under digital insurance models must fully comply with the new framework within 30 days of the effective date.
Industry experts view the dual rollout of NIIRA 2025 and the Insurtech guidelines as a decisive step towards reshaping the future of insurance in Nigeria. By embracing technology and establishing a clear regulatory pathway, the reforms are expected to unlock growth, improve service delivery, and foster greater trust among consumers.
The reforms are also aligned with the government’s broader digital economy strategy, ensuring the insurance sector plays a key role in Nigeria’s financial inclusion and economic diversification agenda.
As the implementation phase begins, NAICOM has pledged continuous engagement with stakeholders to ensure a smooth transition and effective adoption of the new regulatory frameworks.
With these bold reforms now in place, Nigeria’s insurance industry appears firmly on track for a digital-first, innovation-driven future.
@2025 The Ameh News: All Rights Reserved
Discover more from Ameh News
Subscribe to get the latest posts sent to your email.
