NAICOM Urges Insurance Companies to Drive Economic Growth
By Patience Ikpeme
The National Insurance Commission (NAICOM) has called on insurance companies to play a more active role in supporting Nigeria’s economic development.
In a speech delivered at the 4th CHINET Aviacargo Conference 2024, Olusegun Ayo Omosehin, the Commissioner for Insurance and Chief Executive Officer of NAICOM, emphasized the crucial role of insurance in fostering growth and stability.
Omosehin highlighted several areas where insurance companies can make significant contributions: Insurance can provide the financial backing necessary for large-scale infrastructure projects, such as airports, roads, and railways.
By managing risk, insurance enables businesses to undertake high-risk ventures that can yield substantial economic benefits. In addition, insurance companies can provide long-term financing options, essential for supporting sustainable economic growth.
Omosehin believes they can also help businesses manage high-risk exposures, allowing them to operate with greater confidence and resilience and insurance can contribute to the growth of debt and equity markets by providing a stable investment environment.
The Commissioner also addressed the evolving landscape of the aviation industry, noting the increasing importance of technology and sustainability. He emphasized the need for insurance companies to adapt to these changes and provide tailored solutions to meet the evolving needs of the industry.
“The future of aviation is characterized by predictive maintenance, automation, and a focus on reducing carbon emissions,” Omosehin said. “Insurance plays a vital role in mitigating the risks associated with these advancements.”
Omosehin highlighted the importance of reinsurance in managing aviation risks on a global scale. He emphasized the need for collaboration between domestic and international insurers to ensure adequate coverage for aviation-related risks.
While acknowledging the challenges faced by the insurance industry, including disruptive environmental factors and changing customer behaviors, Omosehin expressed NAICOM’s commitment to supporting insurers in overcoming these obstacles. He emphasized the regulator’s role in ensuring the stability of the financial system, promoting sound insurance practices, and safeguarding policyholders’ interests.
NAICOM’s call for a more active role for insurance companies in Nigeria’s economic development is timely. As the country strives to achieve sustainable growth, the insurance sector can play a pivotal role in providing the financial support and risk management tools necessary to drive progress.
