By Jennete Ugo Anya
Nigeria’s insurance sector, long hampered by low penetration and limited public trust, is entering a new chapter.
The National Insurance Commission (NAICOM) has teamed up with the FinTech Association of Nigeria to push a digital-first agenda that could change how millions of Nigerians access, purchase, and experience insurance.
At the recent strategic meeting in Abuja, Commissioner for Insurance, Mr. Olusegun Omosehin, and a FinTech delegation led by Mr. Segun Aina, President of the Africa FinTech Network, explored how technology can serve as the engine for modernising the industry.
“Digital adoption is no longer optional; it is fundamental to the future of insurance in Nigeria,” Mr. Omosehin told his visitors, stressing NAICOM’s resolve to place the sector at the forefront of innovation.
For the FinTech community, the partnership is an opportunity to leverage technology not just for payments and banking, but also for building trust in an industry where uptake has been historically low. “We are committed to supporting NAICOM’s vision of a transparent, accessible, and innovative insurance ecosystem,” Mr. Aina said.
Fresh Guidelines, New Guardrails
The discussions had come as NAICOM prepared to enforce new insurtech guidelines, effective August 1, 2025. These rules seek to balance innovation with consumer protection by defining what digital insurance platforms can and cannot do.
Under the guidelines, insurtechs are barred from offering high-risk or specialised products – such as oil and gas insurance, marine and aviation coverage, retirement life annuities, or government asset insurance – without NAICOM approval. They are also prohibited from:
- Launching products or using dynamic pricing without actuarial backing.
- Relying solely on AI systems to decline claims without human oversight.
- Accepting cryptocurrency payments for premiums or claims without prior approval.
- Sharing personal data in violation of Nigeria’s data protection laws.
- Using manipulative digital designs – so-called ‘dark patterns’ – to mislead customers.
- Conducting cross-border digital sales or physical marketing campaigns outside the digital model.
These safeguards, NAICOM says, are meant to ensure innovation doesn’t come at the expense of consumers.
A Sector Ready for Renewal
Insurance penetration in Nigeria currently stands at less than two percent of gross domestic product (GDP), far below African peers like Kenya or South Africa. Analysts say the combination of FinTech tools – mobile platforms, data-driven underwriting, blockchain verification – with NAICOM’s regulatory backing could significantly expand access, particularly among underserved populations.
For Mr. Omosehin, the partnership with FinTechs represents a chance to rebuild confidence in insurance. “Our goal is to protect policyholders and ensure every Nigerian sees insurance not as a burden, but as a trusted safety net,” he said.
The two bodies agreed to maintain continuous engagement, opening the door for pilot projects, joint advocacy campaigns, and the deployment of digital infrastructure that could transform the insurance experience from opaque paperwork to seamless mobile transactions.
While the new guidelines may tighten the reins on insurtech operations, industry watchers believe they will also provide much-needed clarity, paving the way for responsible innovation. For millions of Nigerians who have never purchased an insurance product, this collaboration could make coverage as easy as buying airtime.
