Coral Gables, March 26, 2025 – SL FINANCIAL is an actuarial consulting and advisory firm based in Miami, Florida. We offer actuarial consulting and advisory services for businesses and governments in both traditional (re)insurance and alternative risk financing industries.

The rapid technological advancement is transforming the insurance industry, and the Nigeria Insurance Industry Innovation Forum, organized in partnership with FSD Africa and NAICOM, provided an opportunity to explore these changes. This event served as a valuable platform for engaging with key stakeholders in the Nigerian market, discussing trends and innovations that are reshaping the insurance sector.

Key Highlights of the Forum

Among the key topics discussed during the forum:

• Integration of Fintech and Insurtech with Traditional Insurance: Strategic collaborations aimed at improving accessibility and market penetration.
• Streamlining Premium Payments: Developing solutions that seamlessly integrate into the daily lives of policyholders.
• Financial Inclusion for Low-Income Populations: Creating tailored offerings to reach a broader audience.

The forum also provided insight into BimaLab Insurtechs and innovations from their incubation program, which includes SL FINANCIAL. Additionally, an in-depth review of NAICOM’s “Sandbox Framework and Policy” gave a better understanding of the regulatory environment designed to guide and foster innovation in the insurance sector.

The Soundbox Concept: A Key Regulatory Innovation

As digitalization accelerates, regulators must ensure that technological innovations meet reliability standards before scaling up. This is where the soundbox concept comes into play.

A soundbox is a live testing environment where new technological solutions are evaluated under the supervision of regulators. With strict criteria for quality and integrity, this environment allows for the validation of performance and compliance before the full-scale deployment of innovations.

Key Takeaways from the Forum

The forum yielded several significant conclusions:

• NAICOM is enhancing regulatory agility by implementing monitoring mechanisms to respond more quickly to market suggestions.
• Improved Claims Processing: The insurtech company ETAB demonstrated this by reducing claim processing time from 19 to 10 seconds.
• Simplification of Insurance Contracts: Making terms more accessible to the public is vital for insurance democratization.
• Streamlining Administrative Processes: Technologies like facial recognition are simplifying subscription and claims declaration processes.
• Creation of a License for Insurtechs: NAICOM is working on a framework that would allow startups to become fully regulated players.
• Public Awareness and Education: To increase trust and insurance penetration, information must be disseminated in local languages and tailored to cultural realities.

SL FINANCIAL: A Strategic Partner for Insurtechs

At the forum, SL FINANCIAL/GALLP positioned itself not as a competitor to insurtechs and micro insurance but as a strategic partner. Its expertise supports these players in:

• Developing Pricing Strategies for New Formats: For example, determining the price of a three-month auto insurance policy as opposed to the usual annual coverage.
• Applying IFRS 4 and IFRS 17 Accounting Standards: Providing essential technical support to simplify regulatory compliance for insurtechs.

Conclusion

The Nigeria Insurance Industry Innovation Forum highlighted the crucial role of technological innovation in insurance and the regulatory framework needed to guide its deployment. The soundbox initiative represents a vital tool for testing and refining these advancements before wide-scale adoption. Collaboration between insurtechs, financial institutions, and regulators is key to building a more inclusive, agile, and efficient insurance ecosystem.

For any question or media inquiry, please visit our website at www.sl-financial.com or contact our team at that ceo@sl-financial.com.

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Achille Sime

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ceo@sl-financial.com