The National Insurance Commission (NAICOM), an insurance industry regulator, has set a N1.5 billion capital base for Insuretech firms operating in the country.
Insurtech firms are institutions that use technological innovations to provide insurance services efficiently and effectively.
The operational guidelines, issued by the regulator on Wednesday, take effect on Friday, August 1, 2025. They are expected to provide a clear and unified regulatory framework for the licensing, operations, and supervision of Insurtech firms in the country.
NAICOM, in the guidelines, said: “For standalone Insurtech, the higher of: N1,500,000,000 per category of general or non-life insurance business or risk-based capital determined from time to time by the Commission; N1,000,000,000 per category of life insurance business or risk-based capital determined from time to time by the Commission and such other amount as may be prescribed by the commission from time to time.”
For insurtech partnering with insurance institutions, NAICOM noted that the applicant should have a minimum capital requirement of N10,000,000 as of the date of application and should continue to maintain the same throughout the licence period, as well as Professional Indemnity of not less than N100,000,000 or as might be prescribed by the commission from time to time.
The commission said it might increase from time to time the minimum capital requirement specified above, while the Insurtech firm should submit to the commission, annual audited financial statements not later than the 1st quarter of the subsequent year, in the format as might be prescribed by the Commission from time to time.
