By Patience SAGHANA
Nigerian government’s local content Act 2010 is said to rank among four other countries which regulations paved way for competition; transparency of process and supports for market growth in the sector.

The other four countries that share similar regulations with Nigeria on their oil and gas regulations are South Africa, India, Indonesia and Qatar.

Giving the comparison, Mr Jonathan Raven, Senior Vice-President Marsh Energy (UK)  said South Africa had recognised that international investment and expertise  were required which resulted in successful integration of Lloyd’s market into that country.

He said that country allowed operators with capacity risks necessitating  that international insurers must demonstrate that local capacity has been exhausted

Raven stated that South African’s regulation requires application for RV7 from Reserve bank to facilitate international transfer of premium, adding that local insurers are permitted to object to such application

India, he said,  is dominated by four state insurance companies which add up the total number of insurance companies in India to 19 whilst 10 percent compulsory session is given to the state reinsurer, GIC though the country allowed for international reinsurance.

And just like Nigeria and South Africa, Raven said operators with capacity risks necessitating international insurers in India must demonstrate that local capacity has fully been exhausted.

However, Indonesia does not have central reinsurance company but has high structured  tender processes with five insurance companies being regulated by BPMigas

In the case of Qatar, the Marsh Senior VP said  do not have state reinsurer but develops state asset insurer in spite of its two dominant insurers whilst the country gives support to low level insurers in Indonesia, stating that Indonesia has a consortium of three insurance companies as well as highly structured tender process.

According to him, “Most long standing energy producing nations have an insurance structure that fosters local insurer growth”

The outcome, stated do not often benefit buyers of insurance as a result of lack of transparency and communication. He said, “There are signs of increasing sophistication of the NOC buyer in how risk is qualified and quantified through the use of Enterprise Risk Management which will require greater collaboration between the insurance providers”