At the Aviacargo Chinet 2024 Conference, the spotlight was cast on the critical role insurance plays in bolstering the aviation industry, as a distinguished panel of experts took center stage to discuss the evolving landscape of aviation insurance. The panel, which brought together some of the most prominent names in the sector, provided deep insights into risk mitigation, regulatory challenges, and innovative insurance solutions that can drive growth in the aviation cargo industry.The Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, weighed in on the regulatory framework governing aviation insurance, calling for an overhaul that aligns with international best practices. He emphasized that the Nigerian insurance industry is prepared to support local operators in competing internationally by offering bespoke products that cater to their specific needs. “Our goal is to create an enabling environment where insurers and aviation stakeholders can collaborate more effectively, reducing risk while encouraging investment and growth in the sector,” Omosehin noted.
Chief Babajide Olatunde-Agbeja, Chairman of Boff & Co. Insurance Brokers Ltd., emphasizing the unique challenges faced by aviation operators in Africa. He highlighted the increased exposure to risks due to operational inefficiencies, aging aircraft, and the complexities of navigating international regulatory environments. “The aviation industry cannot thrive without robust insurance mechanisms. Insurers must work closely with operators to provide tailored solutions that mitigate these risks effectively,” Chief Olatunde-Agbeja stressed.
Mr. Shadrach Adegoke of AIICO Insurance Plc. took a technical approach, explaining how aviation insurers are increasingly leveraging data analytics and risk modeling to offer more competitive and comprehensive coverage to operators. He pointed out that innovations such as usage-based insurance (UBI) and digital risk assessment tools are reshaping the insurance landscape, allowing for more precise pricing models and better coverage.
The conference organizer, Ikechi Uko, spoke passionately about the importance of insurance as a backbone for the industry’s sustainability. “Insurance is often seen as a safety net, but in the aviation sector, it is more than that – it is an enabler. Without adequate coverage, operators are exposed to risks that could lead to financial collapse. The insurance sector must step up and partner with airlines to support their growth,” Uko said.
In an emotionally charged contribution, Ms. Omowale Olatunde-Agbeja, Acting MD of Boff & Co. Insurance Brokers Ltd., highlighted the human factor in insurance. She argued that beyond policies and premiums, the industry needs to focus on educating operators on risk management. “It is not enough to sell policies. We need to engage operators, help them understand the importance of safety protocols, and work hand-in-hand to ensure they are fully covered,” she said.
Mr. Abedeen Musa, ED of NSIA Insurance Co. Ltd., stressed the importance of developing homegrown insurance solutions that cater specifically to the African market. He noted that international insurance models do not always align with the realities faced by African operators and called for a more localized approach to underwriting aviation risks.
Concluding the session, Mr. Jimalex Orjiako, ED of Consolidated Hallmark Insurance Co. Ltd., spoke about the role of collaboration in addressing the challenges that aviation operators face. He encouraged stakeholders across the insurance and aviation industries to share data and insights, which would lead to more accurate risk assessments and better outcomes for all parties involved.
The panel on the role of insurance in aviation at Aviacargo Chinet 2024 was hailed as one of the most impactful sessions of the conference. It showcased how the collaboration between insurers, regulators, and operators can drive growth, innovation, and sustainability in Africa’s burgeoning aviation cargo sector. As the continent seeks to solidify its position in global aviation, the insights from this panel will no doubt play a significant role in shaping future policies and strategies.
