By Abiodun Folarin
WorldStage– The Commissioner of the National Insurance Commission (NAICOM), Mr. Olusegun Omosehin, has said the ECOWAS Brown Card Insurance Scheme must be sustained through strict compliance with operational guidelines; says delays in claims settlement and inconsistent application of rules undermine confidence in the scheme.
The Insurance Commissioner, Omosehin, speaking at the first ECOWAS Brown Card Scheme zonal meeting in Lagos on Tuesday, said the scheme remains a vital tool for regional mobility and financial protection.
He said the meeting comes at a critical time for the West African insurance industry, amid regulatory reforms, technological change, and the growing demand for deeper regional integration.
“Beyond insurance coverage, it 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.
“In Nigeria, the scheme is further strengthened by the Nigerian Insurance Industry Reform Act, 2025, which provides a flexible, principles-based regulatory framework. The Act formally recognizes and reinforces the institutional role of the National Bureau, enhancing governance and regulatory oversight of the scheme.
“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.”
The Insurance Commissioner pointed out that delays in claims settlement and inconsistent application of rules undermine confidence in the scheme.
According to him, prompt and fair settlement of cross-border claims is central to the success of the Brown Card Scheme.
He further explained that to sustain its integrity, there must be strict compliance with operational guidelines, timely settlement of valid claims, and strong collaboration among regulatory authorities.
He added that delays in claims settlement and inconsistent application of rules continue to undermine confidence in the scheme.
He therefore urged regulators to continue working closely with national bureaux and industry stakeholders to ensure adherence to established conventions while safeguarding the financial stability of the markets.
He described the theme of the meeting, “The Digital Divide: Managing Change in the Brown Card Operational Strategy for Effective Cross-Border Claims Settlement,” as both timely and relevant.
On the benefits of digitalisation, he said it offers clear advantages, including improved verification of insurance certificates, faster information exchange, more efficient claims processing, enhanced fraud detection, and greater transparency.
However, he noted that digital transformation must be carefully managed. Key regulatory considerations include data governance, cybersecurity, system interoperability, and the standardisation of digital processes.
Technology, he said, should strengthen coordination and efficiency, not create new operational gaps across member markets.
Regional Cooperation and Public Protection
He said the effectiveness of the Brown Card Scheme depends on mutual trust, reciprocity, and collective discipline. No single country can operate the system successfully in isolation.
Zonal engagements such as this provide valuable opportunities to address operational challenges, harmonise regulatory approaches, share experiences, and strengthen collaboration among member states.
“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. When the scheme functions effectively, it reinforces public trust in insurance and supports broader economic and social protection objectives,” he said.
