Subscriber base of $20b underwriting pool hits 22
‘Initiative to boost capacity, curb
THE $20 billion Energy and Allied Risks Insurance Pool of Nigeria (EAIPN), inaugurated by the Nigerian Insurers Association (NIA) last year, has recorded eight new membership subscribers.
The Director-General of the association, Sunday Thomas, told The Guardian that eight more underwriting companies have joined the original 14 insurance companies in the pool, bringing the total subscribers to 22.
He expressed joy that the project has taken off ground with the inauguration of the technical management board for the pool and the appointment of Africa Re as the Pool Manager for the development of the local insurance market.
According to him, “the objectives of the pool are to develop local financial capacity and improve local underwriting skills; provide technical underwriting information to member companies, curb capital flight by way of reinsurance premiums overseas and compete with international reinsurers and guarantee premium reduction”.
Although he decline to give the amount the pool had recorded since inauguration, but added that the pool shall be an underwriting instrument for insurance companies by way of membership and subscription and shall be subject to payment of an entry fee.
The Chairman of the association, GUS Wiggle, in his remark said that it is the association’s desire to further take advantage of the Nigerian Content Act 2010, curb capital flight, build local capacity in oil and gas underwriting and increase retention of oil business locally, the pool has become fully operational.
He added that the Technical Management Board led by a past chairman of the association, Wole Oshin, has been inaugurated last year while Africa Re was appointed as the pool manager, and 22 member companies have so far subscribed to the pool. It is a significant step in the building and development of technical and financial capacity in the industry.
The energy pool is the baby of the Nigerian Insurers Association and has the full backing of the National Insurance Commission (NAICOM). It is designed to explore appropriate strategy to enable the industry build adequate capacity for the industry to underwrite 70 per cent business set in the local content policy for the industry.
The Guardian gathered that all the subscribers have established oil and gas department headed by a General Manager to oversee its development, and technical and managerial staff recruited and send on local and overseas training to meet requirement of sector.
A chieftain of the industry and Group Managing Director, LASACO Assurance Plc, Olusola Ladipo-Ajayi, commended the NIA, the commission and the insurance companies for the concerted steps taken to meet challenges in the local content policy, adding “the pool would impact positively on the local retention capacity of member companies as well as increase the number of operators participating in the oil and gas underwriting business”.
According to him, there may be challenges initially, but we are determined to take our rights. It may take some time, but ultimately we shall be there.