On 30 July 2025, the National Insurance Commission (NAICOM) issued new guidelines for Insurtech operators in Nigeria (the Guidelines). They took effect on 1 August 2025. The Guidelines set a structured framework for Insurtech solutions, and they apply to standalone Insurtech entities as well as licensed insurers that partner with Insurtech providers.
The issuance marks a significant milestone for Nigeria’s insurance sector. The Guidelines aim to support innovation while protecting customers from risk.
They also give eligible operators a route to become standalone Insurtech companies. Notably, NAICOM has ruled that no Insurtech business may run without prior registration or authorisation, and it gave existing operators a 30-day window from the effective date to regularise.
How the NAICOM Insurtech Guidelines classify operators
The Guidelines split Insurtechs into two groups. A standalone Insurtech works on its own and sells insurance directly to customers. It may transact only the classes named in its licence, and it cannot write oil and gas, marine and aviation, retiree life annuity, or government (MDA) asset and liability insurance.
A partnering Insurtech works with a licensed insurer instead. Its permitted services include marketing and distribution, customer service, policy administration, product management, claims management, business aggregation, and data work such as crop cutting and yield calculation. Each partnership needs a Service Level Agreement that sets out scope, roles, technical duties and governance.
Capital, levies and prohibited activities
Capital thresholds differ by model. A standalone Insurtech must hold NGN1.5 billion per category of general or non-life business and NGN1 billion per category of life business, or risk-based capital set by NAICOM. A partnering Insurtech must hold minimum capital of NGN10 million throughout the licence period, plus professional indemnity cover of at least NGN100 million.
Insurtechs also pay an information systems levy. A standalone operator pays 1% of gross premium a year or NGN5 million, whichever is higher. A partnering operator pays 1% of gross commission a year or NGN500,000, whichever is higher.
The Guidelines prohibit a defined list of practices. These include unlicensed insurance operations, unapproved products and pricing, misleading marketing, cross-border digital sales without approval, and the acceptance of premiums or payment of claims in cryptocurrency without NAICOM approval. An Insurtech also cannot rely fully on automated systems to decline claims without human review.
Registration, compliance and reporting
Registration runs in three stages: application, verification and licensing. A licence lasts four years once the fee is paid. During operation, an Insurtech must keep secure customer-facing platforms, run KYC checks at onboarding, obtain prior approval for every product and digital tool, and follow Nigerian data protection law and the Cybercrimes Act.
Reporting duties are strict. Insurtechs file annual IFRS accounts, retain electronic records for at least ten years, and resolve customer complaints within two weeks. They must also submit executed Service Level Agreements before use, notify NAICOM of leadership changes within five days, and seek approval before mergers, capital restructuring or a change of directors. Our note on the new minimum capital framework in Nigeria’s insurance sector covers the wider recapitalisation drive, and our analysis of the Nigerian Insurance Industry Reform Act sets out the statute behind these rules.
Click the button above to read our full analysis of the NAICOM Insurtech Guidelines and the compliance steps operators should take now.