The insurance industry is entering a new phase with the launch of its first blockchain-enabled mutual model, a product expected to shift policyholders from passive buyers to active co-owners while strengthening transparency and widening access to insurance.

The model, introduced by Mutual Aid Specialist Microinsurance (MAIDS), has received approval from the National Insurance Commission NAICOM) under a state microinsurance licence, marking a major milestone in the industry’s ongoing transition toward technology-driven solutions.

Speaking at the unveiling in Lagos, the Divisional Managing Director of MAIDS, Geraldine Umeche, described the initiative as a transformative step for the sector, noting that it introduced a new framework built on trust, accessibility and shared value.

“This represents a historic shift in how insurance is delivered, trusted and scaled within our communities,” she said.

At the core of the model is the application of blockchain technology to insurance, enabling policyholders to move beyond the role of passive customers to active stakeholders with ownership rights.

Through tokenisation of premiums using smart contracts, contributors accumulate digital tokens that reflect their participation and growing stake in the business.

Founder of MAIDS, Adetola Adegbayi, explained that the structure is designed to align the interests of policyholders with those of the company, while removing traditional barriers that have limited participation in insurance ownership.

“As the company generates profits, policyholders are rewarded not only with protection but also with share allocations, effectively transforming them into shareholders over time,” she said.

The innovation comes against the backdrop of persistently low insurance penetration in Nigeria, where a significant portion of the population remains uninsured, largely due to affordability constraints, limited awareness and trust deficits.