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Insurance: Ibom Air CEO laments the weak state of Nigeria insurance companies to handle aviation

LR Ibom Air COO, George Uriesi, Ibom Air CEO, Capt. Mfon Udom and Publisher, atqnews Magazine, Ambassador Ikechi Uko

Concerned about the survival of Nigerian airlines, the Chief Executive Officer, Ibom Air, Capt. Mfon Udom wants the Nigerian government to help grow the capacity of Nigerian insurance companies to enable them handle aviation insurance completely. 

Capt. Udom stated this when he received Ambassador Ikechi Uko, Organiser of Akwaaba African Travel Market at the head office of Ibom Air in Uyo. 
He said, no insurance company is able to completely insure a Nigerian airline. “Then the reinsurance arrangements creates 3rd parties and brokers that prevents efficient underwriting arrangements.” 

According to him, the premiums paid by Nigerian airlines to foreign insurances companies keep rising because of presumed country risks”, he said.

 “The system at play now does not help the industry and the passengers are paying the price. Even the Nigerian economy is not benefiting from the current situation.”

Capt. Udom urged the Government to force the insurance companies to scale their capacity and maybe tweak the law to allow airlines deal directly with underwriters.
 Speaking on the operations of Ibom Air, Capt. Udom while thanking his August visitor and  his team said, Ibom Air has done very well so far because it kept to its business plans, hired the best staff available and did not chase opportunities. 

“The vision by the State Governor is to create a hub in Uyo, create jobs and generate economic activity for the state. Our success is because of the vision. We are happy with the honours that we have earned after providing good services to our passengers.”

Talking about the challenges the airline faced in its 18 months of operation, Capt. Udom said that the Covid19 lockdown almost derailed the trajectory of growth for the airline.

 He said that the aviation company is back to the original path after covering up the gaps identified and will soon be announcing good results. The patronage has improved and today the airline has the best on-time performance in Nigeria.
On the purpose of his visit, Ambassador Ikechi Uko said he is in Uyo to invite Ibom Air to the 2021 edition of Abuja Jabamah where Ibom Air will receive the award as the Best Airline in Nigeria for the year 2020.