Soaring Dollar rattles insurers on ECOWAS Brown Card claims

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Chuks Udo Okonta

The continued downward sliding of the Naira over the Dollar which has soared above N1000, is ripping off through huge claims, the gains made by insurance companies in the ECOWAS Brown Card business.

Available data from the Nigerian Insurers Association (NIA) revealed that insurance companies have as at September 2023 sold Brown Cards worth N126.11 million as against N12 million sold in 2022.

Speaking on the impact of the soaring Dollar on ECOWAS Brown Card claims, the Managing Director of a general business firm, told Inspenonline that his company has settled claims running into thousand of Dollars, arising from the card.

He noted that prior to the attachment of the Brown Card to third party motor insurance policy, motorists only buy the card whenever they want to travel across the Nigerian borders, adding that presently motorists, having purchased third party motor insurance travel across the borders without the knowledge of their insurer and whenever there is an incident in the visited country, the insurance company has to source for Dollars to settle the claims.

He submitted that the present Dollar rate is impacting on his company’s claims portfolio, adding that the company has no option rather than to cope with the development.

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