Insurance Product Digitization
Health insurance captures coverage tier, premium, network, and exclusions, integrating with HMOs for claims. Motor insurance is mandatory under the Insurance Act, requiring NIID integration for verification. Life and travel need underwriting data: age, health, occupation, and destination. Micro-insurance for mobile phones, market traders, and agriculture is the fastest-growing segment, driven by simplified underwriting and fast claims.
Policy Management System
The system generates a unique policy number, issues a digital document, and manages the lifecycle from quote through active, expired, cancelled, or reinstated. Automated workflows handle renewals, premium collection, and cancellation. Endorsements modify terms and generate updated documents with full change history. The dashboard provides search, endorsements, cancellations, and reporting with role-based access.
Claims Processing Workflow
Customers submit claims through the app with documents and photos. The system validates against policy terms: active coverage, incident within period, and covered type. Simple claims use automated assessment; complex claims escalate to human adjusters. Approved claims trigger payment within 48 hours. The customer tracks progress through the app.
NAICOM Compliance Requirements
Platforms must register as an insurer, micro-insurer, or intermediary with minimum capital from ₦50 million to ₦10 billion. NAICOM Market Conduct Guidelines require transparent disclosure, fair treatment, and prompt settlement. Platforms submit monthly premium returns, quarterly claims reports, and annual audited accounts through the NAICOM portal.
Integration with Insurance Partners
Most platforms partner with licensed insurers rather than underwriting directly. The platform integrates via APIs for quotation, issuance, claims, and settlement. Premiums are remitted daily or weekly with commission deducted automatically. The reconciliation module matches platform records against partner reports, flagging discrepancies.
Frequently Asked Questions
How much does it cost to build an insurtech app in Nigeria?
A basic insurtech MVP with one product type and manual claims processing costs between ₦8 million and ₦20 million. A full-featured platform with policy management, claims automation, and NAICOM compliance ranges from ₦20 million to ₦50 million.
What NAICOM regulations apply to insurtech platforms?
Platforms must comply with the NAICOM Market Conduct Guidelines, the Insurance Act 2003, and NAICOM Guidelines for Digital Insurance Operations. Registration as a direct insurer or intermediary with minimum capital requirements is mandatory.
How does digital claims processing work in insurtech?
Customers submit claims through the app with supporting documents. The system validates against policy terms, assesses damage through automated or manual review, calculates the claim amount, and processes payment. Simple claims should settle within 48 hours.
Your Next Step
The fastest path to market is partnering with a licensed insurer rather than applying for a direct licence. This reduces capital requirements and lets you focus development on the customer platform. Start with a discovery session mapping your target products against NAICOM requirements and identifying suitable partners. Our team has built insurtech platforms for Nigerian insurance companies. Book a free consultation.