About 49 insurance companies in Africa have pooled gross premium income of $85.63million in five years, under the aegis of the African Oil and Energy Insurance Pool, between 2006 and 2010.
The members were also said to have a subscribed capacity of $27.78 million in the five year period, with underwriting profit rising to $39.38million and operating profit to $38.18million.
The Pool’s premium income in 2010 alone stood at $21.10million just as its underwriting profit hit US$12.65million, with operating profit put at $10.87million.
The pool said a cautious underwriting approach has been instrumental in maintaining profitability, adding that its achievements in 2010 resulted largely from the continued cooperation and commitment of the members as managers of the pool.
The Deputy Managing Director, African Reinsurance Corporation, Mr. Ken Aghoghovbia, said the Anglophone West African insurance sector has organised itself in a way that the sub-region can no longer be ignored in the oil and gas insurance business.
According to him, “The insurance sector in Anglophone West Africa is well positioned to offer its services to the Oil and Gas industry.
Aside from the sub-region’s strive to enhance its capacity and competence for the big risks, West African insurance companies have proven beyond doubt to have a good grab of the oil and gas risks.
Aghoghovbia affirmed that the Nigeria insurance industry for instance, is continually developing its knowledge base through frequent training programmes and exposures to international brokers and underwriters.
He said noted that insurance companies have set up Oil and Gas desks to bid for the insurances of major oil risks, though they are not yet in a position to quote on these risks.
The discovery of more oil in many African countries and increased sophistication of technology to meet world energy demand enhanced the growth of oil and energy insurance in Africa.
In addition, Aghoghovbia said that a number of countries have introduced policies to encourage more local participation in this sector which also results in empowerment of the local industry.
Significant development, he envisaged, is expected in the future and in the overall claim experience within the continent in the years ahead.