NAICOM Urges Strict Compliance to Sustain ECOWAS Brown Card Insurance Scheme
The National Insurance Commission (NAICOM) has issued a strong call for strict compliance with operational guidelines to ensure the sustainability of the ECOWAS Brown Card Insurance Scheme. The commission warned that persistent delays in claims payment and weak enforcement of rules are significantly eroding confidence in this crucial regional framework.
Critical Regional Mobility Framework
Commissioner for Insurance, Olusegun Omosehin, made this urgent appeal during the first zonal meeting of the ECOWAS Brown Card Scheme held in Lagos. He described the scheme as absolutely critical to regional mobility and financial protection across West Africa. Omosehin emphasized that the meeting occurred at a pivotal moment for the region's insurance industry, as operators navigate regulatory reforms, technological shifts, and growing demands for deeper regional integration.
"Beyond providing insurance coverage, this scheme represents trust among member states and directly supports the ECOWAS objective of free movement of persons and goods," Omosehin stated. "It ensures essential protection for victims of cross-border road accidents, making it a cornerstone of regional cooperation."
Challenges Undermining Credibility
However, the commissioner expressed serious concerns that delays in claims settlement and inconsistent application of rules across member countries continue to undermine the scheme's credibility. According to his assessment, prompt and fair settlement of cross-border claims remains central to the scheme's success. He stressed that strict adherence to operational guidelines, improved collaboration among regulators, and stronger enforcement mechanisms are urgently required to sustain its integrity.
Omosehin noted that Nigeria's framework has been significantly strengthened by the Nigerian Insurance Industry Reform Act of 2025. This legislation formally recognizes and reinforces the role of the National Bureau, enhancing governance and regulatory oversight within the country's insurance sector.
"As regulators, our responsibility is to maintain a system that is credible, transparent, and responsive to the needs of motorists and accident victims across the entire region," he declared.
Managing Transition and Collaboration
The commissioner cautioned that the current transition must be carefully managed to address numerous challenges, including data governance, cybersecurity, interoperability, and the standardization of processes across all member states. These elements are essential for creating a seamless and effective regional insurance framework.
Chairman of the Nigerian Insurers Association (NIA), Kunle Ahmed, echoed these sentiments, emphasizing that the success of the scheme depends entirely on strong collaboration among regulators, the National Bureau, insurers, and other key stakeholders. He highlighted that the Nigerian National Bureau (NBS) plays a strategic role in coordinating implementation of the scheme, acting as a vital bridge among the insurance industry, regulators, and the regional system governing cross-border claims.
Ahmed stated that the strengthening of the Bureau under the 2025 reform law represents a significant milestone in aligning Nigeria's operations with global best practices and in reinforcing the overall credibility of the scheme. He added that the insurance industry remains fully committed to supporting this framework, particularly through motor underwriting firms that provide the essential cover backing the entire scheme.
