NAICOM issues operational guidelines for insurtech firms

The National Insurance Commission (NAICOM) has officially released a set of operational guidelines to regulate Insurtech businesses in Nigeria, marking a significant milestone in the country’s drive towards digital innovation in the insurance sector.
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The guidelines, which take effect from August 1, 2025, are the result of extensive consultations geared at providing a unified regulatory framework for the licensing, operations and supervision of Insurtech firms.
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According to NAICOM, the primary goal of the new framework is to foster innovation in the industry by encouraging the development of new and technology-driven insurance products and services.
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The guidelines are also to protect consumers, improve service delivery, reduce regulatory ambiguity, and boost public confidence in the growing Insurtech ecosystem.
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By the decision, the commission hopes to advance the digital transformation of the country’s insurance industry, while aligning with the broader objectives of the national digital economy.
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The framework introduces two categories of Insurtech operations. Partnering Insurtechs are permitted to transact specific classes of insurance products in collaboration with licensed insurers. Standalone Insurtechs, on the other hand, can operate independently based on the scope defined in their licences. However, they are restricted from underwriting high-risk insurance such as oil and gas, marine and aviation, retirement life annuity, and government-related insurance policies for Ministries, Departments and Agencies (MDAs).
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The guidelines establish clear licensing procedures, as outlined in Schedule I, and NAICOM maintains the authority to grant approvals with conditions deemed necessary under applicable laws.