Revised Insurance Regulation on Leased Aircraft Unveiled to Boost Airline Operations

Strategic Insights -

The National Insurance Commission (NAICOM) and the Minister of Aviation and Aerospace Development have introduced the Revised Insurance Regulation on Leased Aircraft with the aim of slashing airfares and promoting stability in the aviation insurance market. The regulation aims to support the Federal Government's intention to grow the economy by providing a conducive atmosphere for airline operators to bring in aircraft into the country. The revised regulation has been designed in alignment with the government's desire for local content and the agenda of liaisons and financiers.

Key Takeaways:

  • The Revised Insurance Regulation on Leased Aircraft has been designed to promote stability in the aviation insurance market and align with the government's desire for local content.
  • The regulation will allow local airline operators to cede up to 90% of insurance policies to the international market, reducing the previous requirement of 95%.
  • The regulation will provide a conducive atmosphere for airline operators to bring in aircraft into the country, ultimately leading to a reduction in airfares.
  • The regulation will positively impact Nigeria's Gross Domestic Product (GDP) and enable capacity building locally, allowing for the transfer of knowledge.
  • The implementation of the regulation should be seamless, according to the Executive Chairman of United Airlines, Prof. Obiora Okonkwo.

Statistics:

  • Up to 90% of insurance policies can be ceded to the international market, down from the previous requirement of 95%.
  • The regulation aims to promote stability in the aviation insurance market.
  • The regulation is expected to positively impact Nigeria's Gross Domestic Product (GDP).
  • The implementation of the regulation should be seamless, according to airline stakeholders.

Sources:

  • News Agency of Nigeria, "NAICOM, Aviation Ministry Unveil Revised Insurance Regulation on Leased Aircraft"
  • ThisDay, "NAICOM Unveils Revised Regulation on Local Insurance of Leased Aircraft"
  • Vanguard, "NAICOM presents revised insurance regulation on leased aircraft"