by Patience SAGHANA
Nigerian insurance industry could enhance its capacity and confidence in the oil and gas insurance business if insurance companies can do more of conventional reinsurance treaty and expose their staff to more training.Those are the submissions of Mr Jide Wright, Executive Director of the Lasaco Assurance Plc in an interview with Sweetcrude.He said, â€œThere is need to have conventional treaty. What insurance companies have generally are not conventional treatiesâ€.Moreover, he explained that reinsurance transactions are arranged through specialised contracts and as such, there is a need to understand the legal and regulatory environments in which these contracts are designed and enforced.Â â€œThe reinsurance business is essential to international trade and to economic growth. The use of inappropriate reinsurance arrangements and the effects of inability to recover amounts from reinsurers here contributed to several high profile failures by insurers and consequences for those involved with themâ€.Governments are taking a close interest in the ability of the industry to fulfill its purpose and are continuously introducing or revising legislation to ensure it is able to meet its contractual (and social) obligationsAccording to him, â€œIt is also necessary to have some form of training in the oil and gas apart from the fact that its risks are internationally rated, it will help the local market expose and competenceâ€Lasaco Assurance Plc has said that its oil and gas insurance premium in 2009 rose to N14.5billion.The company’s share of the market has so far been encouraging in terms of premium income and profitability.He stated, â€œI can conveniently say that we are one of the key players in the oil and gas insurance business in the Nigeriaâ€.Mr. Olusola Ladipo-Ajayi, Managing Director of the company said that over the years, the company has continued to enhance its special risk portfolio in the oil and gas insurance business.Â According to him, â€œLasaco has a strong reinsurance treaty with foreign reinsurers, which enhanced its capacity to insure more risk in the sector.â€To maintain its position as a major player in the sector, he added that the company had been able to groom a team of young men and women who have become versatile in the business.Â The Lasaco boss said the insurance company does not hesitate when it comes to investing on its human capital especially in exposing his staff to training abroad.
regarding oil and gas. For instance, he recalled that at an oil and gas insurance forum held in London recently, the company sent some of its staff for training there ‘They were trained and got more exposure from renowned experts in the field.