csrreporters 
The National Insurance Commission (NAICOM) has reiterated that its minimum capital requirements for insurtech firms are designed to promote innovation without compromising financial stability or public trust in the insurance sector.
Speaking at the annual seminar for insurance journalists in Abeokuta, Ogun State, the Deputy Commissioner, Technical, Dr. Usman Jankara, explained that the regulatory framework offers flexibility for technology driven insurance companies to operate either as partners with traditional insurers or as stand alone entities.
If you choose to partner, all you need is ₦10 million to operate. But a stand alone insurtech is essentially a mini insurance company and must have capital,” Jankara said.
He stressed that these measures are crucial to protect policyholders, sustain trust, and ensure that emerging players in the digital insurance space operate responsibly.
“We must balance innovation with prudential soundness. If insurtechs fail to meet obligations, public confidence will collapse and set the industry back 20 years,” he cautioned, noting that the capital thresholds represent roughly 10 per cent of what is required for conventional insurers under the new Nigerian Insurance Industry Reform Act.
Jankara revealed that the guidelines were developed after extensive consultations with industry stakeholders, reinforcing NAICOM’s collaborative approach to regulation.
He also announced that, under the new law, insurers that delay claim settlements now face a penalty of at least ₦500,000 in addition to compounded interest at the prevailing bank rate.
“If the prevailing rate is 28 per cent, it will be applied on top of the unpaid amount, compounded over the delay period,” he explained.
Jankara further clarified that NAICOM does not publicly disclose claim payments due to legal and data protection considerations, maintaining that confidentiality and policyholder privacy remain paramount.
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