Nigeria is reviewing its Third Party Motor Insurance and this will enable the National Insurance Commission, NAICOM, announce a new price for that aspect of insurance policy by January 1, 2022.
The Nigeria Insurers Association (NIA) Advertising Committee Chairman Sub-Committee on Publicity and Communication, Ebelechukwu Nwachukwu, disclosed this in Lagos.
Nwachukwu, also Managing Director, NSIA Insurance Limited, said the Committee, working on the review on the part of Nigeria Insurers Association would conclude and submit its report to the regulator by November.
According to her, “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.”
The Committee, had an interaction with representatives from ECOWAS on how to process and issue the ECOWAS brown card with a motor insurance and how it will work in the Nigerian market.
The NAICOM, during the meeting, also highlighted some key buckets of risks that it would be using to measure insurance firms when it visits for the Risk Based Supervision.
The Credit risk include, Liquidity risk, Market risk, Insurance risk, Operational risk, Legal regulatory risk, Compliance risk and Strategic risk.
She stated that , “NAICOM did a test run of the RBS in five insurance companies, and following the outcome of the assessment from the firms, the regulator came up with highlights of the risks.
“Highlighting the risk is good for the underwriters so that we can go back in-house to ensure that our reports are standard when it comes to reporting RBS to the regulator.”
Nwachukwu hinted that the NAICOM portal had been working effectively since it was launched last month and is making the work of insurers easier because their operations were now being monitored live online by the regulator.
Nwachukwu said the underwriters would keep interacting with the regulator on how to improve on its operations.
According to her, many insurance companies were not yet complying 100 per cent as the transactions are going live because some still bundle their transactions to report later.
On the International Financial Reporting Standard 17 expected to kick-start by January 1, 2023 for financial institutions, Nwachukwu said the regulator and operators were working closely on the implementation.
She said: “NAICOM has been having discussions with lots of insurance companies on the implementation of IFRS-17, mostly on the part of the NIA.
“A working group of policy and methodology was created to come up with a guidance note on the implementation.”