NAICOM Unveils New Price For Third Party Motor Insurance January 2022

The National Insurance Commission (NAICOM) is targeting January 2022 for the announcement of a scientific new price for Third Party Motor Insurance in Nigeria.

The Chairman, Nigerian Insurers Association (NIA) Committee on Publicity, Ebelechukwu Nwachukwu who disclosed to the Media said “By January 1, 2022, the regulator should be able to announce a scientific new price for the third party insurance policy that will also include the ECOWAS Brown Card”, she noted.

Nwachukwu who is also the Managing Director, NSIA Insurance Ltd., said the Insurers Committee was working on the review of the motor policy. The report will be submitted to NAICOM in November.

Nwachukwu disclosed that insurers met with ECOWAS representatives on how to process, issue the brown card with motor insurance and how it will work in Nigerian, adding that at the meeting, NAICOM highlighted risks it would use to measure insurance firms when it visits for the Risk-Based Supervision (RBS).

These, it said, include Credit risk, Liquidity risk, Market risk, Insurance risk, Operational risk, Legal regulatory risk, Compliance risk and Strategic risk.

Nwachukwu further confirmed that NAICOM did a test run of the RBS in five insurance companies. “Highlighting the risk is good for the underwriters so that we can go back in-house to ensure that our reports are standard regarding reporting RBS to the regulator”,

The Insurers Committee comprises NAICOM and Chief Executive Officers (CEO) of Insurance companies in Nigeria.