NAICOM releases guidelines to regulate insurtech operations
By Taiye Olayemi
The National Insurance Commission (NAICOM) has unveiled comprehensive guidelines to regulate Insurtech operations in Nigeria, with effect from Aug. 1.
The new guidelines, which followed extensive consultation with industry stakeholders, aim to provide a clear regulatory framework for licensing, operations and supervision of Insurtech firms across the country.
In a statement on Wednesday in Lagos, NAICOM said the guidelines were introduced to promote innovation in the insurance sector, enhance consumer protection, and drive digital transformation.
The commission said that the framework would help reduce regulatory uncertainty, build public trust and confidence, and boost the development of new and innovative insurance products and services.
It noted that some of the key objectives of the guidelines include promoting responsible innovation, defining product features specific to Insurtech, and providing a clear licensing structure for both partnering and standalone Insurtech firms.
“Under the new rules, two categories of Insurtech operators will be recognised: Partnering Insurtechs, which are allowed to transact specified classes of insurance in collaboration with licensed insurers.
“The second one, Standalone Insurtechs, which may transact insurance as specified in their licence but are restricted from offering special risk products such as oil and gas, marine and aviation insurance, retirement life annuity, and insurance for government assets and liabilities.
“Prospective operators must submit applications in line with the procedures stated in the guidelines, adding that it reserves the right to impose licensing conditions as necessary,” it added.
It explained that insurtech firms would also be required to adhere strictly to prudential and market conduct provisions covering risk management, investments, actuarial practices, outsourcing, and other operational standards in line with the commission’s prudential guidelines.
To ensure fair business practices, the guidelines provide a dispute resolution mechanism requiring Insurtechs and their partner insurers to resolve disputes through arbitration before approaching the Commission.
Consumers can also escalate unresolved complaints directly to NAICOM for intervention.
NAICOM directed all existing insurance institutions and Insurtech operators to comply fully with the new guidelines within 30 days from the effective date. (NAN) (www.nannews.ng)
Edited by Olawunmi Ashafa
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