The National Insurance Commission (NAICOM) has announced new guidelines that restrict insurtech firms from participating in certain high-risk sectors. This includes industries such as oil and gas, marine, and aviation. Additionally, these companies will be prohibited from engaging in cryptocurrency transactions.
Under the new guidelines, the following restrictions are now in effect:
These measures aim to safeguard the insurance industry from the potential risks associated with these volatile sectors and transactions.
These restrictions mainly impact insurtech companies that may have been looking to expand into these high-risk areas. Traditional insurance companies may not feel the same constraints, as they often have more established risk management frameworks in place. This move is likely aimed at clarifying the operational boundaries for newer, tech-driven firms in the industry.
In essence, NAICOM's latest guidelines are a step to ensure that insurtech firms operate within a safer and more regulated environment. While this may limit growth opportunities for some, it reflects a broader initiative to manage risks effectively in the insurance sector.
Original Source: https://businesspost.ng/general/naicom-limits-insurtech-firms-from-oil-gas-marine-crypto-businesses/