NAICOM express capacity to undertake risk for aviation sector
By Oluwakemi Kindness
The National Insurance Commission, (NAICOM) has appealed to all stakeholders in the aviation sector to see the bigger picture of growing our industries beyond the immediate individual gains, but rather, collectively growing an economy that is sustainable and self-reliance to absorb shocks.
The National Commissioner for Insurance Olusegun Ayo-Omosehin, which stated this said the role of insurance should therefore be seen beyond just financial protection, to one that is a very critical part of the economy.
He stated this in Lagos on Thursday during 4th CHINET AVIACARGO Conference 2024 where he spoke as a Special Guest of Honour on the Role of Insurance in Aviation Business.
The entire insurance value-chain is intended to enhance efficient allocation of resources in market-oriented economies everywhere. Specifically, it is noteworthy that insurance companies facilitate investment in infrastructure and high-risk/return activities, by generating sources of long-term finance, manage high-risk exposures as well as help stimulate the growth of debt and equity markets.
“We are committed to giving adequate support to operators in the insurance sector and confidence to operators in the aviation industry in our effort to promote economic growth and development of our Nation, Nigeria.”
Omosehin noted that aviation business which is international by nature 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.
He noted that insurance is therefore 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.
He assured that as a regulator in the financial services sector, NAICOM role is to ensure stability of the financial system, improve soundness of our operators in the insurance sector and safeguard policyholders’ interest.
