Domestic insurance companies have welcomed a directive from the National Insurance Commission (NIC) for risk insurance cover for the assets of the Ghana Gas Infrastructure project to be shared among all the 24 general insurance companies through the Ghana Oil and Gas Insurance Pool (GOGIP).
According to the Managing Director of Activa international Insurance Company Ghana Limited Steve Kyermanten “This arrangement will help local insurance companies to acquire underwriting skills and even capacity over a period of time. At a point in time the market will become more open and it is at that point that the market would become more open for individual insurance companies to approach the oil companies and sell insurance to them.”
Before the directive by the NIC, four insurers — SIC, Phoenix Insurance, Vanguard Assurance and GLICO were to manage the insurance cover.
Speaking to Citi Business News Steve Kyermanten said the decision to place the Ghana Gas Infrastructure project insurance in the Ghana Oil and Gas Insurance Pool is right to allow all the 24 general insurance businesses to benefit.
“I think that for the purposes of developing the local market it is reasonable for Ghana Gas to be insured through the pool. The pool itself is going to have recourse to a very large reinsurance.”
By: Norvan Acquah – Hayford/citifmonline.com/Ghana