Matthew Otoijagha
The nation’s insurance industry loses N100 billion yearly to capital flight due to lack of adequate capacity to underwrite the high risk in aviation insurance business.
Commissioner for Insurance, Alhaji Mohammed Kari, who disclosed this in Abuja, said, “Insurance industry loses no less than N100 billion in the aviation sector annually to capital flight.” He said that the National Insurance Commission, NAICOM, is making all efforts to improve the capacity of local insurance firms to enable them control substantial portion of the aviation insurance business in the country.
Kari noted that with the remarkable improvements recorded in the aviation sector within the last few years, there is hope of further stride in local content aviation insurance in Nigeria by 2010.
The Deputy Managing Director of Africa Reinsurance Corporation, Africa Re, Mr. Ken Aghoghovbia, also noted that aviation insurance is still far from local content. According to the CEO, “For aviation business, if you cannot retain much, you will be forced to retrocede a lot more than you can keep.”