In the wake of the Oil and Gas sector in Uganda, it was evident that the risks to be covered were too enormous to be adequately insured in Uganda.

Therefore, in a bid to grow local capacity and ensure that the risks are sufficiently covered, the insurance industry players under the Insurance Regulatory Authority (IRA) sanctioned the formation of the Insurance Consortium for Oil and Gas Uganda (ICOGU), a co-insurance group, consisting of licensed local insurance companies, to undertake local insurance for the oil and gas sector in Uganda in accordance with the Insurance Act.

It was set up to enable and foster consolidation of the financial and technical capacity required of insurance companies participating in the underwriting of oil and gas risks. This consortium came into force in 2016.