Tech firms eye fintech model for insurance
Technology firms (InsurTechs) are working to secure the approval of the National Insurance Commissions (NAICOM) to drive insurance products in Nigeria.
So far, Mp-Platform Ltd, Insurance Hub Nig. Ltd, and P2Vest Tech Ltd have already secured approvals, while CBI Insuretech Limited and WRAPA Insuretech Limited have just applied for licences.
The firms plan to leverage the provisions of the Insurance Industry Reform Act (NIIRA) 2025, which allows tech partners to work with insurance companies for better product distribution and penetration.
The firms are applying to be licensed as web aggregators to sell insurance products.
Insurance web aggregators are digital platforms that provide comparisons of products from multiple providers. Regulated by the National Insurance Commission (NAICOM), they ensure transparency, fair representation, and accurate information to help consumers make informed insurance choices online.
Doris Uzoka-Anite, minister of State for Finance, said during the West African Insurance Companies (WAICA) Education Conference in Nigeria that insurance will achieve its true impact only when it reaches everyone, including farmers, market women, artisans, and micro-entrepreneurs.
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Anite said Nigeria must promote micro-insurance, digital channels, and parametric products that pay out instantly based on verified data.
“By doing so, we expand coverage, deepen financial inclusion, and strengthen resilience at the grassroots, which remain a priority of the Federal Ministry of Finance.”
The National Insurance Commission (NAICOM) recently issued operational guidelines for Insurtech businesses in Nigeria, following extensive stakeholder consultation and engagement.
The guidelines, effective from August 1, 2025, are designed to provide a clear and unified regulatory framework for the licensing, operations, and supervision of Insurtech firms in Nigeria.
Olusegun Omosehin, commissioner for Insurance, said the coming into effect of the NIIRA 2025 marks a significant milestone, providing a modern and robust framework that enables the nation to drive innovation, enhance supervision, and prioritise consumer protection.
“The NIIRA is indeed a transformative catalyst that fosters an enabling environment that sparks innovation, facilitating the development of novel products, testing of cutting-edge distribution channels and elevating consumer protection to unprecedented heights,” he said.
The Insuretech guidelines, NAICOM said, aims to foster innovation that can lead to the development of new and innovative insurance products and services, while ensuring consumer protection and improving consumer experience.
The key objectives of the guidelines 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; 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, while supporting Nigeria’s broader digital economy and fintech ecosystem.
Partnering insurtechs are only permitted to transact specific classes of insurance in collaboration with licensed insurers, while standalone insurtechs are permitted to transact the categories of insurance as may be specified in its license, excluding 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 (MDAs).
Read also: NAICOM guidelines open door for insurtechs in Nigeria
Insurtech firms must comply with provisions related to risk management, investment practices, actuarial standards, outsourcing, and other key operational parameters as detailed in the commission’s prudential guidelines, NAICOM said.
Meanwhile, all existing insurance institutions and insurtech firms operating under any arrangement classified as insurtech had until end of September 2025 to have fully complied with the guidelines within 30 days of the effective date.
Nigeria’s insurance industry gross written premium rose to a record high of N1.213 trillion in the second quarter (Q2) of 2025, indicating a 49.3 percent growth rate compared to the same period in 2024.
Total asset of the industry also grew to about N4.4 trillion in Q2, compared to the N2.3 trillion reported in the corresponding period of 2024.
