Insurance players to hold 3-Day Symposium on Oil and Gas

19th, Feb 2024 Share This

Insurers involved in Oil & Gas projects under their umbrella body the Insurance Consortium for Oil and Gas Uganda (ICOGU) are optimistic more premiums will be underwritten soon given the lucrative nature of the Oil and Gas Sector.

Speaking ahead of the Oil and Gas Symposium set to take place from February 20 – 22, 2024 at Four Points by Sheraton, the players said that so far US$13m was registered in 2023 out of the total investment of USD20m.

According to James Maguru, ICOGU Consortium Leader, this is a good return on investment given that it’s a new sector they are investing in.

“The premiums underwritten so far are a testament to the fact that the Oil and Gas Sector has the potential to grow the insurance industry. The re-payment is made in phases and this is why we have received USD13m. ICOGU is optimistic that the remaining balance will be cleared,” Maguru noted.

The 3-day symposium seeks to update the ICOGU members on the latest developments in the Oil & Gas sector and address key areas of concern to enable them to make informed decisions as they participate in the consortium insurance plans.

ICOGU Technical Committee Chairman, Paul Kavuma reckons that the symposium also seeks to devise ways of building the expertise required for the industry.

“Being the first of its kind in the insurance industry, we still have many areas to fine-tune based not just on the current state of Uganda’s Oil & Gas sector, but also developments from other evolved markets that we seek to learn from & benchmark on.”

Some of the major areas of discussion will include Underwriting oil and gas risks, Contractors’ All Risks, Reinsurance for oil and gas risks, Claims and Loss Adjusting, liabilities & business interruption.

The Oil & Gas sector is synonymous with massive operations that come with potential risks of great magnitude. The risks exist at all points in the Oil & Gas ecosystem right from exploration, drilling, and refining to transportation.

This makes insurance a key requirement of sustainability & uninterrupted continuity through minimizing losses resulting from accidents & natural disasters.

The Association is very passionate about ICOGU and as UIA Chairman, it is therefore incumbent upon us to look out for the interests of our members and ensure that they contribute to the sector gainfully,” UIA Chairman Latimer Mukasa said.

Source: The Independent (click here to view)