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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