The National Insurance Commission (NAICOM) has stepped up efforts to expand insurance penetration by licensing NETAPPS as a partnering Insurtech.

The move is expected to accelerate the digital distribution of insurance products and extend coverage to millions of underserved Nigerians.

The licence is described as another milestone in the regulator’s digital transformation agenda aimed at making insurance more accessible, affordable and inclusive.

Despite being Africa’s largest economy, Nigeria’s insurance penetration remains less than one per cent, with experts attributing the low uptake to poor awareness, limited product accessibility, high distribution costs and inadequate technology adoption.

Speaking at the presentation of the licence in Abuja, the Commissioner for Insurance, Olusegun Omosehin, said innovation has become indispensable in achieving strategic objectives of financial inclusion, consumer protection and sustainable industry growth.

According to him, digital platforms and alternative distribution channels are increasingly becoming the most effective means of reaching underserved populations, particularly young Nigerians who rely on mobile technology for financial services.

Omosehin said insurtech companies are expected to complement the operations of conventional insurers by deploying technology that simplifies policy purchase, enhances claims processing and improves customer experience.
He reaffirmed the commission’s support for licensed innovators while maintaining effective regulatory oversight to protect policyholders and ensure market stability.

With the approval, NETAPPS joins a growing number of technology firms authorised to partner with licensed insurers and intermediaries in distributing insurance products through digital platforms.

At the weekend, the incoming Chairman of the Nigerian Insurers Association (NIA), Ebelechukwu Nwachukwu, said the latest approval reflects NAICOM’s recognition that conventional distribution channels alone may not be sufficient to achieve the country’s insurance penetration targets.

Nwachukwu affirmed that insurtech firms have the potential to transform the industry’s business model by reducing customer acquisition costs, accelerating policy issuance and extending insurance services to millions of Nigerians in rural and underserved communities.

She noted that the expansion of digital insurance channels would complement the commission’s ongoing reforms, including recapitalisation, microinsurance and Takaful insurance.