The National Insurance Commission (NAICOM) is expected to release a new price for Third Party Motor Insurance in the near future.
Ebelechukwu Nwachukwu, Chairman of the Nigeria Insurers Association (NIA) Committee on Publicity, told the media that the flight will take off in January 2022.
The Insurers Committee was working on a review of the motor policy, according to Nwachukwu, Managing Director of NSIA Insurance Ltd. In November, the report will be submitted to NAICOM.
“By January 1, 2022, the regulator should be able to publish a scientific new price for the third-party insurance policy that includes the ECOWAS Brown Card,” she said.
Insurers met with ECOWAS representatives to discuss how to process, issue, and use the brown card with motor insurance in Nigeria, according to Nwachukwu.
During the discussion, NAICOM underlined the risks that it will use to evaluate insurance companies when it comes to visit for Risk-Based Supervision (RBS).
Credit risk, liquidity risk, market risk, insurance risk, operational risk, legal regulatory risk, compliance risk, and strategic risk are the different types of risk.
NAICOM conducted a test run of the RBS in five insurance companies, according to Nwachukwu.
“Highlighting the risk is beneficial to the underwriters because it allows us to go back in-house and verify that our reports are standard when it comes to reporting RBS to the regulator,” the source explained.
NAICOM and the Chief Executive Officers (CEOs) of Nigerian insurance companies make up the Insurers Committee.