… Insists Local Insurance Coys Have Capacity To Underwrite Air Transport Risks
…Says Nigeria Has Close To 29 Underwriters Of Aviation Risks
The Commissioner /Chief Executive Officer, National Insurance Commission(NAICOM), Olusegun Omosehin has stated that no one insurance company can underwrite aviation risks as the local underwriters also re-insure with Lloyds of London and other established insurance companies..
This is just as he also said that Nigerian insurance companies have the capacity to underwrite aviation risk and that the insinuations that the local underwriters don’t have the capacity to handle risk is part of international politics to undermine the capacity of the local market.
Omosehin said this while presenting a paper titled, “The Role of Insurance in Aviation Business”at the just concluded 2024 AviaCargo Conference and Awards, in.Lagos.
He said that all over the world including the United States most of the aviation risks that originated from other countries ends up with Liyods of London and other established insurance giants abroad.
He said that no one underwriter bears aviation risks alone ,adding that the reason the aviation risks which originated from other climes will continue to end up at the doorstep of Lloyds of London and others is because that is the home of specialised risks.
“Nigerian insurance companies have the capacity to underwrite aviation risks.. Most aviation risks end up with Liyods of London because that is the home of specialised risks. Even risks that emanates from the United States ends up with Liyods of London. Encourage local insurance sector and don’t be bothered by the politics by the international insurance companies are playing.
“Aviation risk is one of the specialised in insurance business.Nobody should panic because your risk is been insured in Nigeria and insurance allows airlines to transfer financial risk to insurers,” he said.
He posited that the future of the aviation industry is that it has a lot of potential, adding that insurance is a natural ally to aviation policy and cannot operate in isolation.
Omosehin pointed out that while aviation is an international business fraught with accidents, insurance on the other hand, he said is also an international business due to the concept of synergy of risk.
The capacity of aviation insurance, he informed is regulated by the regulatory body; NAICOM, adding that the role of NAICOM is to ensure that the interests of stakeholders are protected..
The NAICOM Boss revealed that presently there are close to 29 underwriters of aviation risks in Nigeria.
He appealed to the aviation sector to join hands together to grow the synergy between the insurance sector and and the aviation industry.
On the insinuations that local insurance companies do not have the capacity to underwrite aviation risks, Omosehin said, “local insurance companies have been able to settle claims with regards to accidents .What you are seeing is international politics from established insurance companies abroad.’
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