Insurance companies yet to subscribe to the Energy and Allied Risks Insurance Pool of Nigeria (EAIPN) have been enjoined to do so in order to retain capacity in oil and gas underwriting, and curb capital flight.
The Nigerian Insurers Association (NIA) also urged those insurance firms that have subscribed to cede businesses to the pool in order to grow the capacity of the local market in energy and allied risks underwriting.
EAIPN commenced operations with early in the year with 14 insurance companies contributing $4 million (about N720 million).
Chairman of the Technical Board of EAIPN, Wole Oshin, informed that the 14 subscribers contributed 40 per cent of their subscribed lines amounting to $4,000,000.
The 14 companies are: Leadway Assurance Company Limited, Custodian and Allied Insurance Plc, Aiico Insurance Plc, Lasaco Assurance Plc, Royal Exchange Insurance Co. Ltd, Consolidated Hallmark Insurance Plc, Sovereign Trust Insurance Plc, 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 Company.
As the Pool is being promoted by member companies of the NIA, Oshin also expressed optimism that other insurance companies that have expressed their interest will subscribe to the Pool after it has been launched.
He equally informed that African Reinsurance Corporation (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.
He added that with the backing of the National Insurance Commission (NAICOM), “there will be a structure that will guarantee the continuous funding of the Pool and to ensure that it will be adequately patronised, adding that “the Board of the Pool anticipates a situation where a large proportion of businesses emanating from the country will have some element of the Pool”.