of 40 per cent of their subscribed lines amounting to $4 million (about N720 million), saying that others joining the EAIPN would help in addressing capital flight which is one of the major challenges undermining capacity building in the nation’s insurance sector.
The Nigeria Insurance Association, NIA, at the weekend advised risk underwriters in the country who were yet to subscribe to the Energy and Allied Risks Insurance Pool of Nigeria (EAIPN) to do so in order to retain capacity in oil and gas underwriting business and curb capital flight incidence in the country.
The Chairman of the Technical Board of EAIPN, Wole Oshin, who gave the advice hinted that currently the Pool which formally was formally floated early this year had 14 subscribers with total contributions
The NIA chief also urged insurance firms that had subscribed to cede businesses to the pool in order to grow the capacity of the local market in energy and allied risks underwriting.
The 14 companies include, Leadway Assurance Company Limited, Royal Exchange Insurance Co. Ltd, Consolidated Hallmark Insurance Plc, Sovereign Trust Insurance Plc, Custodian and Allied Insurance Plc, Aiico Insurance Plc, and Lasaco Assurance Plc.
Others are Linkage Assurance Plc, Sterling Assurance Company Limited, Prestige Assurance Plc, Industrial and General Insurance Plc, Nigerian Agric Insurance Corporation (NAIC), NEM Insurance Plc and NSIA Insurance Company. Oshin expressed the hope that since the Pool is being promoted by NIA member-companies other companies would subscribe to the Pool after it had been launched.
According to him, African Reinsurance Corporation (Africa Re) has emerged as the Manager of the Pool after a rigorous selection process, adding that the company is expected to use its global connections and experience to manage the pool profitably and build the requisite capacity.
He explained that with the industry regulatory institution, National Insurance Commission (NAICOM), supporting the initiative there would be a structure that will guarantee the continuous funding of the Pool and as well as guarantee its patronage.
Oshin said that the Board of the Pool also anticipated a situation where a large proportion of businesses emanating from the country will have some element of the Pool