The National Insurance Commission (NAICOM) has introduced new operational guidelines for Insurtech companies, effective August 1, to streamline digital innovation within the sector and enhance consumer protection.
NAICOM said the guidelines provide a unified regulatory framework for licensing, operations, and supervision of Insurtech firms using technologies like mobile platforms and IoT to deliver insurance services.
Partner Insurtechs will be allowed to sell specific classes of insurance in collaboration with licensed insurers, while standalone entities will operate within the scope defined in their licenses. High-risk areas such as oil and gas, aviation, and government asset insurance are excluded.
Firms must comply with NAICOM’s Prudential Guidelines covering risk management, investment practices, and outsourcing. Disputes between Insurtechs and insurers must go through arbitration before escalating to NAICOM, while unresolved consumer complaints can be taken directly to the Commission.
All existing Insurtech arrangements must comply within 30 days of the effective date.
NAICOM said the move aims to foster innovation, improve consumer experience, and build public trust in the digital insurance ecosystem.
