The Nationwide Insurance coverage Fee (NAICOM) has issued a suggestion that gives Insuretech’s leeway to function within the Nigerian insurance coverage house.
The rules, efficient August 1, 2025, had been issued following in depth stakeholder session and engagement and are designed to offer a transparent and unified regulatory framework for the licensing, operations, and supervision of Insurtech corporations in Nigeria, the Firm mentioned.
The rules goal to foster innovation that may result in the event of latest and revolutionary insurance coverage services, guarantee client safety and enhance client expertise, prioritizing client pursuits and offering higher providers, present readability on regulatory necessities, lowering uncertainty and ambiguity; assist construct belief and confidence within the insurtech sector; driving progress and adoption, and advancing digital transformation throughout the Nigerian insurance coverage sector
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The important thing aims of the rules embrace selling the expansion and growth of Insurtech in Nigeria; establishing regulatory requirements for Insurtech setup and operations; encouraging accountable innovation whereas safeguarding client pursuits; defining common product options particular to Insurtech; and offering a licensing construction for each Partnering and Standalone Insurtech corporations
It should additionally facilitate the transition of eligible operators into totally licensed standalone Insurtech entities, and supporting Nigeria’s broader digital economic system and fintech ecosystem
Software Classes embrace:
Partnering Insurtech: Permitted to transact particular courses of insurance coverage in collaboration with licensed insurers
Standalone Insurtech: Permitted to transact the classes of insurance coverage as could also be laid out in its license, excluding particular danger merchandise akin to Oil and Fuel Insurance coverage, Marine and Aviation Insurance coverage, Retirement Life Annuity, and insurances of presidency belongings and liabilities for Ministries, Departments, and Businesses.
Potential operators who need to take part should submit purposes in accordance with the procedures outlined in Schedule I of the Tips. NAICOM reserves the appropriate to grant licenses with circumstances deemed vital underneath present legal guidelines and this new regulatory framework.
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On prudential and market conduct necessities, Insurtech corporations, the Fee mentioned should adjust to provisions associated to danger administration, funding practices, actuarial requirements, outsourcing, and different key operational parameters as detailed within the Fee’s Prudential Tips.
On how one can resolve disputes, the rules says disputes between insurtechs and companion insurers should first comply with arbitration protocols outlined of their agreements earlier than approaching NAICOM.
“Customers could refer unresolved points from insurance coverage transactions on to the Fee for assessment and backbone.”
All present insurance coverage establishments and Insurtech corporations working underneath any association labeled as Insurtech should totally adjust to these Tips inside 30 days of the efficient date, NAICOM mentioned.
