Insurtech Operations Guidelines Takes Effect August 1st As NAICOM Gives 30 Days Compliance Deadline

The National Insurance Commission (NAICOM) has released operational guidelines for Insurtech businesses in Nigeria, giving 30 days deadline for compliance by operators.

NAICOM declared that the guidelines, would become effective from August 1, 2025, as designed to provide a clear and unified regulatory framework for the licensing, operations, and supervision of Insurtech firms in Nigeria.

NAICOM directed all existing insurance institutions and Insurtech firms operating under any arrangement classified as Insurtech to fully comply with the provisions of the Guidelines within 30 days of the effective date.

The guidelines specified two classes of Insurtech categories namely: Partnering Insurtech and Standalone Insurtech.

The guidelines among other things aims to: Foster innovation that can lead to the development of new and innovative insurance products and services, Ensure consumer protection and improve consumer experience, prioritizing consumer interests and providing better services.

It also aims to Provide clarity on regulatory requirements, reducing uncertainty and ambiguity; Help build trust and confidence in the Insurtech sector, driving growth and adoption as well as Advance digital transformation within the Nigerian insurance sector.

Key objectives of the guidelines enumerated include: Promoting the growth and development of Insurtech in Nigeria, Establishing regulatory standards for Insurtech setup and operations, Encouraging responsible innovation while safeguarding consumer interests.

Others include defining general product features specific to Insurtech, providing a licensing structure for both Partnering and Standalone Insurtech firms, facilitating the transition of eligible operators into fully licensed standalone Insurtech entities and Supporting Nigeria’s broader digital economy and fintech ecosystem.

The guidelines provided that Partnering Insurtech categories are permitted to transact specific classes of insurance in collaboration with licensed insurers.

In the case of Standalone Insurtech categories, they are permitted to transact the categories of insurance as may be specified in its license.

This however excludes special risk products such as Oil and Gas Insurance, Marine and Aviation Insurance, Retirement Life Annuity, and insurances of government assets and liabilities for Ministries, Departments, and Agencies.