NIC Directive Will Build Our Capacity For Oil Sector-Domestic Insurers

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Ghana Oil and Gas Insurance PoolGhana Oil and Gas Insurance Pool
Ghana Oil and Gas Insurance Pool

Domestic Insurance Companies have welcomed a directive from the National Insurance Commission (NIC) for risk insurance cover for the assets of the Ghana Gas Infrastructure project to be shared among all the 24 general insurance businesses through the Ghana Oil and Gas Insurance Pool (GOGIP).

Ghana Oil and Gas Insurance PoolGhana Oil and Gas Insurance Pool
Ghana Oil and Gas Insurance Pool

?These are arrangements to help local insurance companies to acquire underwriting skills and even capacity over a period of time. At a point in time the market will become more open and it is at that point in time that the market would become more open for individual insurance companies to approach the oil companies and prospect to sell insurance to them.?
According to the insurance companies the directive will help build the capacity of the local insurance companies on procedures to underwrite insurance in the oil and gas sector which is new to the insurance sector.
Before the directive by the NIC, four insurers — SIC, Phoenix Insurance, Vanguard Assurance and GLICO had won the bid.

Speaking to Citi Business News Managing Director of Activa international Insurance Company Ghana Limited Steve Kyermanten said the decision to place the Ghana Gas Infrastructure project insurance in the Ghana Oil and Gas Insurance Pool is right to allow all the 24 general insurance businesses to benefit.

?I think that for the purposes of developing the local market it is reasonable for Ghana Gas to be insured through the pool. The pool itself is going to have recourse to a very large reinsurance but at least the members of the pool which after the insurance companies in this market get the opportunity to see a little bit of the risk, learn about the underwriting skills, the policy wording, if there are claims, how do you handle the claims.?
Managing Director of Activa international Insurance Company Ghana Limited said he thinks all things being equal H e thinks the Insurance Commissioner (NIC) is right in her action in getting Ghana Gas to insure with the Ghana Oil and Gas Insurance Pool which has been created.

Source:
NORVAN ACQUAH – HAYFORD

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