By Henry Uche
The National Insurance Commission (NAICOM) has highlighted the pivotal importance of insurance in the aviation sector.
Speaking at the Fourth Chinet Aviacargo Conference in Lagos recently, the Commissioner for Insurance and Chief Executive Officer, Mr. Olusegun Omosehin, delivered a keynote address that shed light on the evolving dynamics of the aviation industry and the indispensable role that insurance plays in its growth and sustainability.
Omosehin pointed out that the aviation sector is witnessing significant advancements, including the advent of electric and hybrid aircraft, predictive maintenance technologies, and the automation of air traffic control systems. However, with these innovations come new and complex risks that demand robust insurance solutions to safeguard against potential negative impacts.
“The future of the aviation industry is brimming with potential,” Mr. Omosehin remarked. “But with that potential comes the necessity for comprehensive risk management strategies. Insurance is not merely a safety net; it is an essential mechanism that ensures the financial burden of unforeseen losses is borne by insurance companies. This transfer of risk fosters growth and development within the sector.”
He further elaborated on the inherent complexities and risks of the aviation industry, noting that as an international business, it faces challenges such as accidents, equipment failures, and operational disruptions. These risks, he explained, are mitigated through global risk transfer mechanisms like reinsurance, which distribute risks across continents, ensuring the industry’s resilience in the face of unexpected events.
The Commissioner also emphasised the value of local expertise in risk profiling, particularly within the Nigerian context. While aviation insurance operates on a global scale, the insights and skills of local professionals are crucial in accurately assessing and managing risks specific to Nigeria.
“The Nigerian insurance sector is uniquely positioned to understand the nuances of various industries, including aviation,” Mr. Omosehin stated. “This deep understanding is vital in providing the right coverage and support to businesses operating within the country.”
Addressing the challenges posed by disruptive environmental changes, Mr. Omosehin called for a concerted effort to drive sustainable economic growth in Nigeria. He highlighted that insurance is not just about providing financial protection but also plays a key role in enhancing resource allocation and stimulating investment in high-risk sectors.
Omosehin assured stakeholders that NAICOM would continue to support the aviation industry by promoting sound insurance practices that contribute to both the sector’s growth and the broader economic development of Nigeria.
He urged all players to embrace a holistic view, recognising the critical role of insurance in facilitating investment, managing high-risk exposures, and driving the overall growth and development of the nation.
“In a broader sense, insurance should be seen as an integral part of the economy—one that not only manages risks but also catalyzes investment and contributes to the overall progress of our nation,” Mr. Omosehin concluded.