By Sola Alabadan
The Commissioner For Insurance and Chief Executive of the National Insurance Commission (NAICOM), Olorundare Thomas, has charged Nigerian insurance operators
to ensure that risks are accurately priced and professional advice is given to insuring entities, especially in the Oil and Gas sector.
Where the company’s exposures not accurately reviewed, his could deter incentivization from the regulator that could be provided in future to compensate for risk improvements deployed to reduce potential environmental liabilities, or the advantages enjoyable by deploying capital on transition from high based carbon energy and its environmental impacts.
He also said “it poses vantage position to avoiding overpricing of products, underrating of risks, negligent omission of necessary covers and its consequential effect on avoidable pressure and burden on finances.”
Thomas spoke on Thursday at the Oriental News Summit Building Local Contents Synergy between the Oil & Gas and the Insurance Sector in Nigeria.
Thomas also spoke on the Guidelines on submission of Insurance Programme by Operators, Project Promoters, Alliance Partners, and Nigerian Indigenous Companies in the Nigerian Oil and Gas Industry.
The Jointly issued Guidelines, he stated, portend to satisfy the intent and provision of the laws: thereby enabling the NCDMB monitor utilisation of in-country insurance capacity which is a road to increased retention, growth in in-country technical capacity, Job creation, increased penetration and GDP growth, human capacity development, and many others.
“It is also projected that the Guidelines will entrench effective regulatory oversight. This is to be the dividend of an active approach to Joint Regulatory Framework for driving Local Content in Nigeria,” has added.
He further highlighted the benefits of the Guidelines to the oil and gas sector, as well as the insurance Industry and the Nation in general; saying” The intention is more tilted towards encouraging preventive, detective; as well as corrective and compensatory regulatory control.”
