Abuja, Nigeria – In a major step toward modernizing Nigeria’s insurance industry, the National Insurance Commission (NAICOM) has released a comprehensive set of guidelines aimed at regulating Insurtech operations across the country.

The framework, which becomes effective August 1, 2025, is designed to streamline licensing, enhance consumer protection, and drive digital innovation in the sector. Insurtech short for insurance technology leverages data and automation to reimagine traditional insurance services.

“These guidelines will promote innovation, enhance consumer protection, and support digital transformation in Nigeria’s insurance sector,” NAICOM stated.

Industry-Backed Policy Development

Announced at a press briefing in Lagos, NAICOM emphasized that the framework was a result of extensive consultations with industry stakeholders. The Commission described it as a necessary step in reducing regulatory uncertainty and boosting investor confidence in Nigeria’s insurance landscape.

Recognized Insurtech Categories

The new guidelines establish two distinct categories of Insurtech operations:

• Partnering Insurtechs: Tech firms working alongside licensed insurers to provide digital solutions for specific insurance classes.
• Standalone Insurtechs: Independently licensed entities permitted to operate within approved insurance lines, excluding high-risk sectors such as oil & gas, marine, aviation, and government-related coverages.

Applicants must follow a detailed licensing process and may be subject to additional compliance conditions at NAICOM’s discretion. Firms are expected to maintain strong governance standards in areas such as risk management, actuarial reporting, outsourcing, data security, and ethical marketing.

Dispute Resolution and Compliance

To ensure transparency and fair play, the Commission has introduced a mandatory arbitration process to resolve conflicts between Insurtechs and traditional insurers. Consumers can escalate unresolved complaints to NAICOM for regulatory intervention.

All current operators have been given 30 days from the August 1 effective date to achieve full compliance with the new provisions.

NAICOM believes the guidelines will foster greater inclusion, transparency, and competitiveness in Nigeria’s evolving insurance sector.