The National Insurance Commission (NAICOM) has called for strict compliance with operational guidelines to sustain the ECOWAS Brown Card Insurance Scheme, warning that persistent delay in claims payment and weak enforcement of rules are eroding confidence in the regional framework.

The Commissioner for Insurance, Olusegun Omosehin, made the call at the first zonal meeting of the ECOWAS Brown Card Scheme in Lagos, describing the scheme as critical to regional mobility and financial protection.

He said the meeting came at a pivotal time for West Africa’s insurance industry as operators contend with regulatory reforms, technological shifts and growing demands for deeper regional integration.

“Beyond insurance coverage, the scheme represents trust among member states and supports the ECOWAS objective of free movement of persons and goods, while ensuring protection for victims of cross-border road accidents,” Omosehin said.

However, he expressed concerns that delays in claims settlement and inconsistent application of rules across member countries continued to undermine the scheme’s credibility.

According to him, prompt and fair settlement of cross-border claims remained central to its success, stressing that strict adherence to operational guidelines, improved collaboration among regulators and stronger enforcement mechanisms are required to sustain its integrity.

Omosehin noted that Nigeria’s framework has been strengthened by the Nigerian Insurance Industry Reform Act, 2025, which formally recognises and reinforces the role of the National Bureau, enhancing governance and regulatory oversight.

“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 region,” he said.

He cautioned that the transition must be carefully managed to address challenges in data governance, cybersecurity, interoperability, and the standardisation of processes across member states.

Chairman of the Nigerian Insurers Association (NIA), Kunle Ahmed, said the success of the scheme depends on strong collaboration among regulators, the National Bureau, insurers, and other stakeholders.

He noted that the Nigerian National Bureau (NBS) played a strategic role in coordinating implementation of the scheme, acting as a bridge among the insurance industry, regulators and the regional system governing cross-border claims.

Ahmed said the strengthening of the Bureau under the 2025 reform law represented a milestone in aligning Nigeria’s operations with global best practices and in reinforcing the credibility of the scheme.

He added that the insurance industry remained committed to supporting the framework, particularly through motor underwriting firms that provide the cover backing the scheme.