Thursday, 27 June 2013

NIA revives oil, energy insurance pool


 

Chuks Udo Okonta

The Nigerian Insurers Association (NIA) has said it is working on reviving the Nigeria Oil and Energy Insurance Pool (NOEIP) to enable underwriters maximise the nation’s comparative advantage in the oil and gas production.    

Its Chairman, Remi Olowude, who was represented by his Deputy, Godwin Wiggle, disclosed this at the association’s 42nd Annual General Meeting (AGM), today Thursday in Lagos. He noted that the initiative will assist the industry improve on its oil and gas underwriting.

He called on operators to take advantage of the opportunity offered by the initiative to build capacity in the area of oil and energy underwriting.

Olowude noted that the volume of business written by the industry last year was estimated at about N240 billion, as against N217.7 billion made in 2011, adding that in spite the stride, the sector continues to grapple with problems of inadequate national infrastructural facilities and the vicissitudes of the weather which exposed many of the insured assets to flood and other national hazards.

He said last year was particularly challenging for the industry, stressing that however, the industry will continue to play its role of financial intermediation in the economy.

The Director General, Sunday Thomas, on the NOEIP, said following the report of the committee set up by the Commissioner for Insurance Fola Daniel, for the industry to look into how it can explore the provisions of the Nigerian Content Act 2010 to increase the local retention capacity in oil and gas business in Nigeria, the association’s Governing Council, through its committee, reviewed the report and recommended the resuscitation of the existing insurance pool.

He said the committee has continued to make progress in fine-turning other details required for the effective take off of the pool to enable it achieve its goals in increasing local capacity.

He noted that members have been called upon to subscribe and participate in the pool.               

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