By David Akinmola
The National Insurance Commission (NAICOM) has stepped up efforts to expand insurance penetration by licensing NETAPPS as a Partnering Insurtech, a move expected to accelerate digital distribution of insurance products and extend coverage to millions of underserved Nigerians.
The move followed the issuance of a Partnering Insurtech licence to NETAPPS, a development industry operators described as another milestone in the regulator’s digital transformation agenda aimed at making insurance more accessible, affordable and inclusive.
Despite being Africa’s largest economy, Nigeria’s insurance penetration remains below one per cent of Gross Domestic Product (GDP), with experts attributing the low uptake to poor awareness, limited product accessibility, high distribution costs and inadequate technology adoption.
Speaking at the presentation of the licence in Abuja, the Commissioner for Insurance, Olusegun Omosehin, said innovation has become indispensable to achieving the commission’s strategic objectives of financial inclusion, consumer protection and sustainable industry growth.
According to him, digital platforms and alternative distribution channels are increasingly becoming the most effective means of reaching underserved populations, particularly young Nigerians who rely on mobile technology for financial services.
Omosehin, said insurtech companies are expected to complement the operations of conventional insurers by deploying technology that simplifies policy purchase, enhances claims processing and improves customer experience.
He reaffirmed the commissions to supporting licensed innovators while maintaining effective regulatory oversight to protect policyholders and ensure market stability.
With the approval, NETAPPS joins a growing number of technology firms authorized to partner with licensed insurers and intermediaries in distributing insurance products through digital platforms.
Also speaking on the development, at the weekend,the incoming Chairman of the Nigerian Insurers Association (NIA), Ebelechukwu Nwachukwu, noted that the latest approval reflects NAICOM’s recognition that conventional distribution channels alone may not be sufficient to achieve the country’s insurance penetration targets.
Nwachukwu, affirmed that insurtech firms have the potential to transform the industry’s business model by reducing customer acquisition costs, accelerating policy issuance and extending insurance services to millions of Nigerians in rural and underserved communities.
She noted that the expansion of digital insurance channels is also expected to complement the commission’s ongoing reforms, including recapitalization, microinsurance and Takaful insurance, all aimed at widening access to insurance protection.
Industry stakeholders argued that greater adoption of digital insurance solutions could significantly boost premium income, improve operational efficiency and strengthen consumer confidence through faster service delivery and seamless claims management.
However, they cautioned that the success of the initiative would depend on sustained investment in digital infrastructure, cybersecurity, consumer education and collaboration among regulators, insurers and technology firms.
For them, the licensing of NETAPPS is seen as more than a regulatory approval, it is another step in repositioning insurance as a digitally driven financial service capable of reaching millions of Nigerians who have remained outsider the formal insurance net.
