The National Insurance Commission (NAICOM) has expressed its commitment to creating an enabling environment for insurers to increase their financial capacity to be able to underwrite big risks in line with the Guidelines for Oil and Gas Insurance Business issued in 2010.
The Commissioner for Insurance, Sunday Thomas, said this at the Oriental News Summit, with the theme, ‘Building Local Content Synergy Between the Oil and Gas and the Insurance Sector in Nigeria’, held in Lagos.
It called on oil and gas institutions in the country to ensure timely compliance with the requirements of the guidelines jointly issued by NAICOM and the Nigerian Content Development and Monitoring Board (NCDMB) under the requirements of Sections 49 and 50 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010.
The Commissioner stressed the need to adopt relevant laws and requirements to grow the sector.
The NAICOM boss also listed actions taken and initiatives adopted by the Commission for a successful implementation of the NOGICD Act.
According to him, before the NOGICD ACT, the Insurance Act 2003 made far-reaching provisions for the domestication of insurance services in Nigeria.
“In particular, Section 65(7) makes it compulsory for any property located in Nigeria, whether moveable or immovable, to be insured with a Nigerian registered insurer. Section 67 requires that insurance of all imports into Nigeria must be insured by insurers registered in Nigeria.
“The historical relationship between both Industries could be traced to the birth of the latter. Following the issuance of the NOGICD ACT, the insurance Industry in collaboration with the Board brainstormed leading to the issuance of The Guidelines for Oil and Gas Insurance Business issued in 2010, which amongst others, stipulates the roles and responsibilities of insurance firms in ensuring compliance with local content law, with the primary consideration of ensuring actual exhaustion of available in-country insurance capacity,” the NAICOM boss explained.
