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From Benjamin a ameh, Lagos
The most awaited catalyst in insurance industry know as energy and Allied Risks Insurance Pool of Nigeria (EAIPN) about to take off as the commission recently inaugurated the technical management board of the pool which comprises of fourteen insurance firms to man the board.
This about to be born (EAIPN) has be championed by the National Insurance Commission (NAICOM) which according to an insurance expert, there is strong indications that the inauguration of the EAIPN will help the insurance industry retain capacity in oil and gas underwriting, curb capital flight and grow the local market in energy and allied risks underwriting.
Those companies chosen to man board are Leadway Assurance Company limited, Custodian & Allied Insurance Plc, Aiico Insurance Plc, Lasaco Assurance Plc, Royal Exchange Insurance Co. Ltd, Consolidated Hallmark Insurance Plc, and Sovereign Trust Insurance Plc.
Also include Linkage Assurance Plc, Industrial And General Insurance Plc, Nigerian Agric Insurance Corporation (NAIC), Sterling Assurance Company Limited, Prestige Assurance Plc, NEM Insurance Plc and NSIA Insurance.
During the inauguration in Abuja, Commissioner for Insurance, Fola Daniel, applauded the Chairman of the Nigerian Insurers Association, Godwin Wiggle for bringing to fruition his desire for a pool that will address some of the challenges faced by insurance companies in oil and gas underwriting in Nigeria.
Presenting the board of the Pool to the Commissioner for Insurance, Chairman of the Board, Wole Oshin, disclosed that the Pool currently has 14 subscribers and they have contributed 40 per cent of their subscribed lines amounting to $4million.
Oshin expressed optimism that other insurance companies that have shown their interest in the Pool will subscribe to it after the launching of the EAIPN.
The Board Chairman informed the CFI that Africa Re emerged as the Manager of the Pool after a rigorous selection process, adding that the company is expected to use its global outreach and experience to manage the pool profitably and build the requisite capacity.
“The Technical Management Board went through a rigorous process in selecting Africa Re as the Manager of the Pool. They have a very strong pedigree and an excellent track record in the management of Pools. We are really counting on their expertise to build capacity and grow the local market and we trust that they will deliver on this mandate,” Oshin said.
He expressed the hope that with NAICOM’s backing the board, “there will be a structure that will guarantee the continuous funding of the Pool and to ensure that the Pool will be adequately patronised.
The Board of the Pool anticipates in a situation where a large proportion of businesses emanating from the country will have some element of the Pool.”
In commissioner words: “the coming of the pool was long overdue as the benefits were immense and that most international players in oil and gas business were anxiously waiting for the Nigerian market to make the bold move.”
While promised that the Commission will support the pool and encourage more insurance companies to subscribe, adding that the Energy and Allied Insurance pool of Nigeria presents a great opportunity for the insurance industry to retain capacity and reduce capital flight.
“I can tell you that I am delighted to have this event today. All my discussions with some players at the Lloyds market in London point to the fact that Nigeria is not ready to retain capacity and grow the market because the players have refused to establish Pools. With the inauguration of the technical management Board of the pool today, you have taken the bold and positive step to curb capital flight and grow the local capacity and I am sure the multinationals will be excited about this” he stated.
Daniel expressed hope that claims payment will be a major thrust of this pool as well as satisfaction with the decision of the Technical Management Board to appoint Africa Re as pool manager, noting that the company is fully committed to developing the local market
NAICOM Boss congratulates Nigerian Insurers Association for working assiduously to ensure that the Pool becomes operational.
