Nigeria’s insurance industry is set for a major digital transformation as the National Insurance Commission (NAICOM) teams up with the Fintech Association of Nigeria (FintechNGR) to leverage technology for expanding insurance adoption across the country.
Currently, Nigeria’s insurance penetration rate sits between 1% and 3%, among the lowest in Africa. This new partnership seeks to close the gap by introducing innovative digital solutions that will make insurance more accessible, affordable, and inclusive.
Fintechs See Insurance as a Growth Opportunity
During a high-level engagement with regulators and lawmakers, FintechNGR, led by Dr. Segun Aina, President of the Africa Fintech Network (AFN), highlighted Nigeria’s poor insurance uptake as both a challenge and an untapped opportunity.
According to Dr. Stanley Jacob, President of FintechNGR, fintech players and insurers must collaborate to design and distribute digital-first insurance products that meet the needs of everyday Nigerians.“Continuous engagement between regulators and fintech players is critical to deepening financial inclusion, and insurance must be part of that agenda,” Jacob said.
NAICOM Admits Supervisory Challenges
NAICOM Commissioner, Mr. Olusegun Ayo Omosehin, acknowledged that supervisory limitations have hindered progress. The lack of SupTech (supervisory technology) tools has made it difficult to drive innovation, monitor compliance, and enforce adoption effectively.
To address this, NAICOM and FintechNGR will work together to map the ecosystem, identify digitally capable players, and deploy tech-driven solutions to improve product innovation and consumer access.
Experts believe this could unlock opportunities in microinsurance, health insurance, and retail-focused coverage, particularly for low-income earners.
CBN Pushes for Innovation and Compliance
The collaboration discussions also extended to the Central Bank of Nigeria (CBN). At a meeting with CBN Governor Dr. Olayemi Cardoso, FintechNGR urged the apex bank to standardize the Africa Fintech Passport initiative to promote cross-border financial inclusion.
Dr. Cardoso stressed the importance of building a regulatory framework that balances innovation with national interest.
“All we want to hear from your organization is good news. Drive your members in the direction that is good for the country,” he said.
Supporting this, Dr. Rakiya Opemi Yusuf, Director of the Payments System Supervision Department at the CBN, reiterated that the bank is committed to financial stability, innovation, and compliance.
Conclusion
With NAICOM and FintechNGR joining forces, Nigeria’s insurance industry may be on the verge of a digital revolution. By integrating fintech innovation with regulatory support, this collaboration could significantly increase insurance penetration, broaden financial inclusion, and create opportunities for millions of underserved Nigerians.
