The National Insurance Commission (NAICOM) has underscored the crucial role of insurance in supporting the aviation industry’s growth and stability.
Addressing attendees at the Fourth Chinet Aviacargo Conference in Lagos, Mr. Olusegun Omosehin, NAICOM’s Commissioner for Insurance and Chief Executive Officer, highlighted the evolving landscape of aviation and the integral role of insurance in navigating this transformation.
Omosehin discussed recent advancements in aviation, such as electric and hybrid aircraft, predictive maintenance technologies, and automated air traffic control systems. He stressed that these innovations introduce new and complex risks that require comprehensive insurance solutions to mitigate potential adverse effects.
“The aviation sector is on the cusp of tremendous growth,” Omosehin stated. “However, this growth brings with it a need for effective risk management. Insurance is not just a precaution; it is a vital mechanism that absorbs the financial impact of unforeseen losses, allowing the industry to thrive.”
The Commissioner elaborated on the multifaceted risks associated with aviation, including accidents, equipment failures, and operational disruptions. He noted that global risk transfer mechanisms like reinsurance are essential for managing these risks, ensuring that the industry remains resilient against unexpected challenges.
Omosehin also highlighted the importance of local expertise in risk assessment, especially within the Nigerian context. While aviation insurance operates globally, local professionals’ insights are critical for evaluating and managing risks specific to Nigeria.
“The Nigerian insurance sector has a deep understanding of local industry nuances, which is crucial for providing appropriate coverage and support,” Omosehin remarked. “This expertise is indispensable for effective risk management in our context.”
Addressing environmental and economic challenges, Omosehin called for a unified approach to fostering sustainable economic development in Nigeria. He emphasized that insurance not only offers financial protection but also enhances resource allocation and stimulates investment in high-risk sectors.
Omosehin reassured stakeholders of NAICOM’s commitment to supporting the aviation industry through sound insurance practices that promote sectoral growth and contribute to Nigeria’s economic development.
He encouraged industry participants to adopt a comprehensive perspective on insurance, recognizing its role in managing high-risk exposures, facilitating investment, and driving national progress.
“Insurance should be viewed as a fundamental component of the economy, one that not only mitigates risks but also drives investment and supports overall national development,” Omosehin concluded.
