IMT 3.0: NAICOM To Release Draft Insurtech Operation Guidelines Soon

By LOVETH AZODO, Lagos

The National Insurance Commission (NAICOM) has announced that it has completed a draft of its Insurtech Operation Guidelines, which will be released soon.

This move, according to the Commission, is part of its broader effort to foster innovation and sustainability within Nigeria’s insurance industry, as the sector seeks to position itself to manage risks in the country’s projected one-trillion-dollar economy.

Delivering a keynote address on the theme “Revitalising the Insurance Industry to Risk-Manage Nigeria’s One-Trillion-Dollar Economic Aspiration,” at the 2024 edition of Insurance Meet Tech (IMT 3.0) held Friday in Lagos, the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin emphasized the need to address several key issues, including low insurance penetration, lack of public trust, market fragmentation, regulatory reforms, and the urgent need for digital transformation.

According to him, the COVID-19 pandemic accelerated the insurance industry’s digitalization process, forcing insurers to develop online platforms and mobile applications in response to lockdowns and disrupted traditional distribution channels. As a result, investing in technology is no longer optional, but necessary for improving customer experience and expanding accessibility.

He also emphasized the commission’s commitment to safeguarding policyholders, improving confidence in the sector, and fostering innovation.

The newly completed Insurtech Operation Guidelines are a testament to the Commission’s determination to integrate technological solutions into insurance operations, ensuring that established industry players remain competitive.

The upcoming guidelines are expected to reshape conventional business models and encourage the development of more customer-centric products.

He further highlighted the Commission’s role in promoting market growth and the need for insurers to embrace new skills, attract talent, and diversify their product offerings.

He stressed that innovation, transparency, and financial stability are critical for the sector to successfully de-risk the economy and manage the risks associated with Nigeria’s economic growth trajectory.

As the insurance sector moves toward greater adoption of technology and Insurtech solutions, the release of NAICOM’s draft guidelines is anticipated to play a pivotal role in shaping the future of the industry, ensuring its relevance and competitiveness in a rapidly evolving economic landscape.