AON, NIA burden in the aviation industry

BY CHUKWUEMEKE IWELUNMO

Airline Operators of Nigeria (AON) and the National Insurers Association (NIA) have expressed divers views on the challenges of aviation insurance within Nigeria.

This issue came to light during a stakeholder engagement aimed at forming new partnerships between the NIA and airlines.

While members of the Airline Operators of Nigeria raised concerns over the additional burden imposed by local insurers, representatives from the NIA maintained their readiness to address these issues effectively. They emphasized the local insurance industry’s capacity and expertise in managing aviation-related risks, stating that the industry was prepared to meet international standards.

The meeting, held at Transcorp Hilton Hotel in Abuja, gathered various stakeholders to address persistent concerns regarding aviation insurance within Nigeria. The discussions centered on finding practical solutions to streamline the insurance processes for the country’s airline industry.

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Aviation Minister, Festus Keyamo, co-chaired the event with Minister of Industry, Trade, and Investments, Mrs. Jumoke Oduwole.

In a statement signed by Tunde Moshood, the collaboration was seen as a key step in addressing AON’s concerns. Airline representatives voiced dissatisfaction during a panel session, expressing frustration over the additional operational burdens they faced.

The session, moderated by Keyamo, allowed participants to air grievances about local insurers. Consequently, representatives highlighted additional costs. These costs were hindering operations and affecting profitability. Moreover, the panel stressed the need for solutions to reduce operational challenges.

They also emphasized improving collaboration with Nigerian insurers. Ultimately, they believed these factors hindered full utilization of local insurance providers.

However, Chairman Olusegun Ayo Omosehin refuted any misconceptions regarding reinsurance in Nigeria.

He assured attendees that Nigerian insurers were more than capable of effectively handling aviation-related risks. Leaders from the NIA, including Director-General Bola Odukale, reinforced this message, providing data-backed presentations to challenge any doubts surrounding the industry’s capacity and its alignment with global standards.

The forum concluded with a consensus to continue further engagement and initiate enlightenment programs. Stakeholders highlighted the importance of reassuring foreign insurers and underwriters about the strength of Nigeria’s local insurance capabilities. This is seen as a vital step in enhancing Nigeria’s position in the global aviation market.

Aviation and insurance representatives committed to attending the Economic Conference in Dublin, Ireland, from January 12-15, 2025. The event will offer a platform for engaging with global leasing companies and highlighting Nigeria’s commitment to aviation growth. It will also provide further opportunities to emphasize the importance of insurance reform in the aviation industry. Nigeria’s participation in this international event underscores its dedication to advancing aviation and strengthening its local insurance sector.