CIIN chief harps on importance of marine, aviation insurance to economy

• Advocates strengthening their resilience

Cynthia Ezekwe

The winds of change are blowing, but the engines of progress are not slowing down. The maritime and aviation industries, which form the backbone of Nigeria’s economic growth, are facing increasing turbulence, but the leader of one of the country’s insurance organised groups is not backing down. In a recent address, Edwin Igbiti, president of the Chartered Insurance Institute of Nigeria (CIIN), called for a renewed effort to strengthen the marine and aviation insurance industries, stressing the importance of their continued resilience to ensure a prosperous future for the country.

The value of marine and aviation insurance to Nigeria’s economy was the focus of a recent summit held in Lagos, organised by Risk Analyst Consultants (UK) Limited in collaboration with the Chartered Insurance Institute United Kingdom. Edwin Igbiti, President of the Chartered Insurance Institute of Nigeria (CIIN), delivered a keynote address at the summit, emphasising the importance of marine and aviation insurance in protecting businesses and individuals involved in maritime and aviation industries, as well as the industries that support them.

Igbiti’s keynote address painted a vivid picture of the global economy as a vast circulatory system, with the seas and skies serving as the arteries and veins, transporting goods and services from one corner of the world to another. He stressed that this critical system requires constant protection and nurturing to ensure that the economic lifeblood of nations continues to flow freely, bringing with it the promise of prosperity and growth. Marine and aviation insurance, he said, are the guardian angels of this system, ensuring that the sea lanes and airways remain open and safe.

“Here in Nigeria, we stand in a unique position. Our country, graced with expansive coastlines and a strategic position in African aviation, is poised at the heart of an evolving narrative – one that speaks of growth alongside challenges, I believe you will attest to this during your tour to some of our airlines and seaport,’’ he said.

Despite the numerous risks and challenges that confront the marine and aviation insurance industries in Nigeria,  Igbiti believes that these industries can and will continue to thrive with the right strategies and support. In his address, he outlined a number of steps that could be taken to strengthen the industries, including improving the security situation at Nigerian ports, increasing insurance penetration in the maritime and aviation sectors, and investing in training and development for insurance professionals. He also called for greater cooperation between the government, the insurance sector, and other stakeholders to promote the growth of the industries.

Igbiti highlighted  the vital role that marine and aviation insurers play in providing financial protection against the inherent risks of these industries. He noted that insurance policies are not just a means of risk management but are also essential for maintaining safety and sustainability in the maritime and aviation sectors. He explained that by providing financial security in the event of an accident or disaster, insurance policies help to prevent economic damage and allow businesses to continue operating. In this way, insurers are not only protecting the financial interests of their clients but also contributing to the safety of the entire global economy.

Reflecting on the state of the marine insurance sector, the CIIN president drew attention to the many risks and challenges that marine insurers face on a daily basis. He noted that the constantly shifting trade policies of nations, the prevalence of piracy in some regions, and the growing risk of environmental disasters are just some of the factors that marine insurers must navigate. He stressed that in the face of these challenges, marine insurers must continue to adapt and innovate in order to ensure that their policies remain relevant and effective.

“On the aviation front, our skies are busier than ever. As the demand for air transport rises hand in hand with technological advancements, the onus lies on us to develop insurance products that not only meet the needs of today but also anticipate the demands of tomorrow. Each vessel that embarks upon the waters, each aircraft that takes to the skies, carries with it the aspirations of Nigeria. They carry our people, our goods, our hopes – and with each journey, they carry the trust that we, as insurers, have done our utmost to protect those aspirations from harm,’’ he stated.

In order to meet the challenges facing marine and aviation insurance in Nigeria, the insurance expert outlined a number of steps that practitioners in the sector must take. First, he called for the strengthening of risk management practices to ensure that policies are better able to address the evolving risks of the sector. He also stressed the importance of leveraging technology to improve efficiency and accuracy, and he urged insurers to engage in dialogue with regulators to ensure that policies are compliant with changing regulations.  In addition, he underscored the importance of investing in training and development to ensure that the workforce is equipped with the skills and knowledge needed to navigate the modern insurance landscape.

In his closing remarks, Igbiti stressed the need for action to be taken in order to safeguard the future of marine and aviation insurance in Nigeria. He noted that the continued growth and resilience of these industries is essential for the country’s economic development and that by implementing the right policies and programmes, a more secure future for these sectors can be achieved. He also called for a concerted effort from all stakeholders, including the government, insurers, and the public, to ensure that the marine and aviation insurance industries remain strong and vibrant in the years to come.