Nigerian delegations are to hold another meeting with the international lessors and financiers by early next year, to advance insurance in the Aviation sector and boost the economy.

This was the outcome of a high level stakeholders follow up meeting of the Insurance and Aviation sectors, convened Wednesday in Abuja at Transcorp Hilton Hotel.

The meeting was chaired by the Honorable Minister of Aviation and Aerospace, Mr. Festus Keyamo (SAN) with his counterpart from Industry, Trade and Investment, Dr. Jumoke Oduwole, in attendance.

Also in attendance we’re the Chairman, Senate Committee on Banking, Insurance and other financial institutions, Sen. Munkhail Abiru, Chairman House Committee on Insurance and Actuarial Matters, Hon. Ahmed Jaha, and representatives from the Nigeria Civil Aviation Authority (NCAA), PEBEC, Nigeria Insurers Association (NIA), Nigeria Council of Registered Insurance Brokers (NCRIB), Airline Operators of Nigeria(AON) amongst other stakeholders.

The Minister of Aviation and Aerospace in his opening remark appreciated all stakeholders for accepting the invitation and stated that the meeting was crucial for the progress of the operations of the airline operators and the growth of the Nigerian insurance market.

Recall that in August this year, the commissioner For Insurance, Mr. Olusegun Omosehin, spoke as
a Special Guest of Honour at the 4th CHINET AVIACARGO Conference 2024

Omosehin 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 the 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.

The recent meeting is a follow-up to the previous one in the efforts to expand insurance which has the potential to greatly impact the nation’s economy.