Nigerian Insurance Firms Shun Oil And Gas Risks

Nigerian Insurance Firms Shun Oil And Gas Risks

Insurance firms have expressed apathy to underwriting oil and gas risks thus undermining efforts by National Insurance Commission (NAICOM), to ensure that local capacity is exhausted before oil and gas risks are taken abroad, Vanguard reports.

Investigations reveal that the apathy of the firms was borne out of fear that claims emanating from such risks could impact negatively on their balance sheet or out-rightly wipe out their capital. Consequently, such companies have concentrated more on small businesses especially third party motor insurance.

The constant refusal by insurance companies, especially the fringe players, to partly underwrite big risks, have been a source of worry to NAICOM, forcing the regulator to subtly persuade some of them to submit themselves for mergers and acquisition.

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