‘Insurance Industry Suitable For Aviation Risk Profiling’

Though the aviation industry is an evolving landscape with several advancements, stakeholders have said, the insurance industry was best suited to provide local expertise in risk profiling.

The experts, who spoke at the Nigerian Council of Registered Insurance Brokers (NCRIB) Members’ Evening held in Lagos recently, debunked the insinuation that the Insurance Industry lacks capacity to underwrite evolving aviation risks.

On his part, the president of the NCRIB, Prince Babatunde Oguntade, acknowledged government’s concerns about the insurance industry’s capacity to underwrite evolving aviation risks, but strongly disagreed with the notion that the industry lacks capacity to underwrite aviation risks.

Prince Oguntade urged the government to reckon with the fact that many insurance companies had invested heavily in building expertise and capacity to underwrite aviation risks. “We further believe that the government’s concerns can be addressed through collaboration and capacity building. We are willing to work with the government to identify areas where the industry needs to improve and develop strategies to address those gaps, ” he added.

Similarly, the Commissioner for Insurance, Segun Omosehin said, through the National Insurance Commission’s (NAICOM’s) prudential guidelines for underwriting, reinsurance, investments and outsourcing were positioned to protect risks in the aviation sector.

The view of Omosehin had a concurrence with that of the chairman of Boff & Co. Insurance Brokers Limited, Chief Babajide Olatunde-Agbeja who was a key discussant at the 4th Chinet AviaCargo Conference, held in Lagos.

According to him, the Nigerian insurance professionals possess the requisite competence and capability to underwrite and facilitate aviation risks, even in the face of the unfolding developments in the sector.
Chief Olatunde-Agbeja said, patronising local insurance for aviation risks was consistent with the extant laws, as well as had capacity to deepen insurance expertise in the sector and accelerate the contributions of the insurance industry to the country’s Gross Domestic Products (GDP).