The National Insurance Commission (NAICOM), has expressed the commitment of the Commission to rendering adequate support to operators in the aviation industry in order to promote economic growth of the country.
Commissioner for Insurance/ Chief Executive Officer, Mr. Olusegun Omosehin made this pledge when he spoke as a Special Guest of Honour at the 4th CHINET AVIACARGO Conference 2024 held recently in Lagos.
He affirmed that aviation business is an international business that is complex in its designs, operations and fraught with risks of accidents and failures, making insurance necessary.
“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.
“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.
Omosehin further stated that, 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.
“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 guide activities in aviation underwriting in Nigeria include the following: – The general requirements require that all aviation insurance businesses shall be conducted in accordance with extant insurance laws and other relevant regulations”, Omosehin said.
He called on all players in the sector to see Insurance as a means of contributing their quota to the growth of the nation’s economy for the prosperity of all.
