We’re Committed To Supporting Aviation Industry Operators -NAICOM Boss
By Sunday Etuka, Abuja
The Commissioner for Insurance/ Chief Executive Officer, National Insurance Commission (NAICOM), Mr. Olusegun Omosehin has expressed the Commission’s commitment to giving adequate support to operators in the insurance sector and confidence to operators in the aviation industry in order to promote economic growth and development of the country.
Mr. Omosehin spoke as a Special Guest of Honour at the 4th CHINET AVIACARGO Conference 2024 held in Lagos on Thursday.
He noted that aviation business is an international business that is complex in its designs, operations and fraught with risks of accidents, equipment failures and all devices that can ground operations, as well as threaten assets of the industry, therefore, insurance is the most favoured risk transfer mechanism to buffer crystallization of unforeseen events such as accident, fire, and air crashes, which have tested the resilience of the insurance industry.
“The roles of insurance cannot therefore be overemphasized as it; – helps and allows airlines, manufacturers, operators to transfer the financial burden of potential losses to insurance companies; – play pivotal role in facilitating investment and financing.
“This is because aviation industry is a capital-intensive industry that requires huge funds and investors are more likely to fund and venture in aviation when there is adequate insurance coverage in place”, he added.
The Commissioner averred that the role of insurance should be seen beyond just financial protection, to one that is a very critical part of the economy.
“The insurance sector is a critical part of any nation’s economy and has the potential of galvanizing the optimal performance of other sectors.
“It is therefore imperative to plant “Insurance” at the center of any equation designed to enhance, sustain and facilitate economic growth and development of any country”, he said.
Omosehin said, as a regulator in the financial services sector, NAICOm’s role is to ensure stability of the financial system, improve soundness of our operators in the insurance sector and safeguard policyholders’ interest.
He maintained that “NAICOM through its prudential regulations had specified minimum prudential standards for underwriting, reinsurance, investments, reserving, and outsourcing.
“The Prudential Guidelines also deals with aviation Insurance and returns, with the ultimate intention of protecting consumers and stakeholders in the industry, ensuring a safe and stable insurance industry, as well as boosting confidence in the sector.
“Some of the prescribed minimum prudential standards that guides activities in aviation underwriting in Nigeria includes the following: – The general requirements require that all aviation insurance business shall be conducted in accordance with extant insurance laws and other relevant regulations”, Omosehin said.
He appealed to all stakeholders in the aviation sector to see the bigger picture of growing the nation’s industries beyond the immediate individual gains, but rather, collectively growing an economy that is sustainable and self-reliance to absorb shocks.
