A delegation of Ghanaian Insurers Association (GIA), umbrella body of that countryâ€™s insurance companies, was in the country to tap from the expertise of Nigerian oil and gas insurance.
The delegation comprising Mr Benjamin Acolatse, president of the Ghana Insurers Association; Mr Larry Jiagge a council member of GIA; Atsu Menyawodor, GIA chief executive; Sophia Quautson, secretary of Ghana oil and gas committee were hosted by Africa Reinsurance Corporation (Africa Re) in Lagos last weekend.
The main purpose of the visit to Nigeria was to see how Africa Re has managed to transform the African oil and gas pool into one of the few success stories in the continent and to explore the possibility of converting the Ghanaâ€™s consortium arrangement for the insurances of oil and gas business into a local pool.
The objective of the Ghanaian association is to ensure that the market does not suffer from the negative impact of unchecked competition in writing oil and gas risks
Mr Ken Aghoghovbia, Regional Director of African Reinsurance Corporationâ€™s West African office who was part of corporationâ€™s team that hosted the Ghanaian delegation recalled that National Insurance Companies Consortium was formed to manage the Oil and Gas portfolio in Ghana, and reminded that SIC Insurance Company Limited was appointed the leader of the Consortium.
The consortium, Aghoghovbia stated, is open to all members of the Ghana Insurers Association underwriting non_life business. â€œWith the formation of the consortium, all insurances would be placed locally and reinsured to international markets.Â The reinsurance commissions received are set aside to cater for all the expenses of handling the business, training of the market on Oil and Gas business and building reserves to facilitate higher market retentionâ€
He said the beauty about the Ghanaian consortium is, â€œThere is no eagerness by insurers to get the business at all cost.Â However, the growth in market knowledge of the business may be at a slow pace since the participating insurers in the consortium would not have the personal drive to urgently acquire the relevant knowledge and underwriting skillâ€.
â€œThe commission is no_risk revenue which can be used to pay for all the expenses of handling the business, fund training, and corporate growth to steadily increase market retentionâ€.