03 July 2012, Sweetcrude, LAGOS – AMIDST fears on the part of insurers that claims emanating from oil and gas risks have been huge and could impact negatively on the bottom-line of companies, some insurance operators are of the opinion that the business still remains a worthwhile venture.
Managing Director of Crystalife Assurance Plc, Mrs. Oluseyi Ifaturoti who disclosed this to Sweetcrude in her office said that with adequate re-insurance, oil and gas risk can be effectively managed.
It will be recalled that the optimism and momentum that started with the local content project on insurance of oil and gas started declining as a result of quick maturation of risks and subsequent claims emanating from the accessed risks.
As a result of the risks crystallising earlier than expected, players are beginning to exercise caution so that they do not burn their fingers which could possibly affect shareholders’ fund.
However, Ifaturoti was of the opinion that the oil and gas business is still worthwhile because there is still a lot of premium to be earned since the re-insurance mechanism is here to spread the risk so that they are not over exposed.
She said “Even the owners of the risk want to see your re-insurance programme for their risks to be sure that when a claim crystallizes you have set in motion machinery that will ensure that their claims are settled.”
Meanwhile, Managing Director of Consolidated Hallmark Insurance Plc, Mr. Eddie Efekoha stated that the insurance industry needs a firmer and stronger oil and gas insurance pool arrangement.