By Favour Pius
The National Insurance Commission (NAICOM) has called for strict compliance with operational guideline to sustain the ECOWAS Brown Card Insurance Scheme, warning that persistent delays 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 comes 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 members 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 continue to undermine the credibility of the scheme.
According to him, prompt and fair settlement of cross-border claims remains 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 recognizes and reinforces the role of the National Brueau, 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.
However, he cautioned that the transition must be carefully managed to address challenges around data governance, cybersecurity, interoperability and standardization of processes across member states.
In his remarks, Chairman of the Nigerian Insurers Association (NIA), Kunle Ahmed, said the success of the Brown Card Scheme depends on strong collaboration among regulators, national bureau, insurers and other stakeholders.
He noted that the Nigerian National Bureau plays a strategic role in coordinating implementation of the scheme, acting as a bridge between the insurance industry,\
Regulators and the regional system governing cross-border claims.
Ahmed said the strengthening of the Bureau under the 2025 reform law represents a major milestone in aligning Nigeria’s operations with with global best practices, while reinforcing the credibility of the scheme.
He added that the insurance industry remains committed to supporting the framework, particularly through motor underwriting firms that provide the cover backing the scheme.
“The credibility of the scheme ultimately rests on the industry’s ability to honour its obligations, especially in respect of cross-border claims settlement,” he said.
Stakeholders at the meeting noted that while digital transformation presents opportunities to enhance efficieny and transparency, disparities in technologicalinfrastructurae across member countries could pose risks if not properly managed.
They stressed the need for inclusive systems, shared standards and coordinated implementation to ensure seamless operations across the region.
Omosehin, maintained that the effectiveness of the scheme ultimately depends on mutual trust, reciprocity and discipline among participating countries, noting that no single nation can sustain the framework in isolation.
“At its core, the scheme exists to protect road users. Motorists travelling across ECOWAS borders must be confident that, in the event of an accident, a reliable compensation mechanism is in place,” he said.
Analysts said strengthening compliance and operational efficiency within the scheme would not only boost confidence in cross-border insurance but also support broader economic integration and trade within the West African sub-region.
