Insurers to pool Shs3 billion to tap oil sector

Kampala. Insurance companies in the country are moving closer to setting a pool of funds to insure risks in the oil sector. The insurers have given themselves a target of July, 2015 to have raised $1m (Shs2.9b) as initial capital for an insurance pool meant for the oil sector.
Mr Azim Tharani, CEO Goldstar Insurance and chairman of the Insurance Pool Uganda, at the Insurance CEO’s meeting last week said considering the huge risks involved in the sector, it would be better if insurance companies bring money together for oil.

“The premiums are juicy indeed, but the risks are high and can wipe out an entire insurance company,” he says.
In the Petroleum Act (Exploration, Development and Production) 2013, oil companies are required to look from within the country for insurance service before they are awarded an exploration licence.
“We must create a pool to maximise local content and this would lead to the long-term growth of the insurance industry. This decision of having the oil and gas pool has been arrived at because of the recommendation of people in the oil and gas industry in other parts of the world,” he added.

To join this pool, an insurance firm must purchase shares at a specified price. Mr Tharani said, there is no limitation on how much an insurance company can purchase.
However, an official from the Insurance Regulatory Authority noted that the $1m would not be enough and proposed it be increased to about $5m (Shs14.9b).

SOURCE: Daily Monitor


President expresses sympathy, urges patience over border closure

President Yoweri Museveni has expressed sympathy to the citizens of Uganda and Rwanda that have been affected by the closure of the Katuna border and called for patience, saying a lasting solution is being sought to solve the problem. He expressed opti…

President, King Oyo to co-host 1st monarchs’ summit

President Yoweri Kaguta Museveni and Omukama Oyo Nyimba Kabamba Iguru of Tooro Kingdom will co-host the first ever World Monarchs’ Summit that is slated to take place in Tooro Kingdom in September this year.The summit is expected to bring together the …