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NAICOM targets January to review third-party motor insurance premium

By Bankole Orimisan
11 October 2021   |   2:49 am
The National Insurance Commission (NAICOM), in collaboration with industry operators, is targeting January 2022 for the review of third-party insurance premiums.

NAICOM

The National Insurance Commission (NAICOM), in collaboration with industry operators, is targeting January 2022 for the review of third-party insurance premiums.

This was disclosed at the weekend by the Chairman of the Nigeria Insurers Association (NIA), Committee on Publicity, Ebelechukwu Nwachukwu.

He said the committee was working on a review of the motor policy premium and the report would be submitted to NAICOM this year to publish a scientific new price for the third party that would include the ECOWAS Brown Card.

To include the Economic Community of West African States (ECOWAS), into the new plan, Nwachukwu noted that insurers met with ECOWAS representatives to examine how to process, issue and use a brown card with motor insurance in Nigeria.

During the discussion, NAICOM underlined risks that would be used to evaluate underwriting firms when it comes to visiting for risk-based supervision (RBS), such as credit risk, liquidity risk, market risk, insurance risk, operational risk, legal regulatory risk, compliance risk and strategic risk.

NAICOM has 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.