The National Insurance Commission (NAICOM) has introduced comprehensive guidelines to regulate the operations of Insurtech firms in Nigeria, effective from August 1.
According to the Commissioner for Insurance, Olusegun Omosehin, the new framework sets out licensing, operational, and supervisory standards for insurance institutions and firms classified as Insurtech. All affected entities are required to comply with the guidelines within 30 days of implementation.
The objectives of the guidelines include promoting innovation in insurance product development, enhancing customer experience, ensuring consumer protection, and supporting the digital transformation of the insurance sector. The guidelines also aim to reduce regulatory ambiguity, build public trust in Insurtech services, and integrate the sector into Nigeria’s broader digital economy and fintech landscape.
Omosehin explained that the guidelines provide regulatory clarity, define product features specific to Insurtech, and establish licensing structures for two categories; Partnering Insurtech: Operators under this category may offer specific classes of insurance in partnership with licensed insurers.
Standalone Insurtech: These firms may independently transact approved insurance products but are restricted from offering special risk covers, such as Oil & Gas, Marine, Aviation, Retirement Life Annuities, and insurance of government assets or liabilities.
Prospective applicants must follow the procedures outlined in Schedule I of the guidelines, while NAICOM retains the discretion to issue licenses with conditions as deemed appropriate.
Insurtech firms are also expected to adhere to NAICOM’s Prudential Guidelines, covering risk management, investment standards, actuarial compliance, outsourcing, and other operational requirements.
In cases of disputes between Insurtech firms and their partner insurers, the parties must exhaust arbitration processes as agreed in their contracts before involving NAICOM. However, consumers can escalate unresolved complaints directly to the Commission for intervention.
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The new regulatory framework underscores NAICOM’s commitment to responsible innovation, market development, and consumer-focused growth in Nigeria’s insurance industry.
