The total insurance cover given to some major oil multinationals in the country by local underwriters rose to $157.99bn between late 2018 and early 2019, investigation has shown.
This amounts to 62 per cent of the total risks insured in four major oil nationals.
The companies insured are the Nigerian National Petroleum Corporation, Chevron Nigeria Limited, Mobil Producing Nigeria Limited and Stardeep Water Petroleum Limited.
The guidelines under the local content initiative of the Federal Government state that the risks under the oil sector are to be fully insured by local underwriters after which the remaining risks can be exported when the local capacity has been exhausted.
Statistics made available by the National Insurance Commission on Saturday revealed that the local underwriters gave a consolidated insurance package to the NNPC worth $99.59bn.
This amounts to 78 per cent of the total risks in the NNPC, while 22 per cent of the remaining risks was ceded out of the country.
The local underwriters gave energy package insurance to Chevron to the tune of $41.31bn.
This amounts to 75 per cent of the total risks in Chevron, with 25 per cent ceded out of the country.
The Nigerian underwriters gave total covers to Mobil worth $14.1bn.
This amounts to 70 per cent of the total risks in Mobil while the remaining 30 per cent was given to foreign reinsurers.
According to NAICOM, local underwriters gave Stardeep energy package worth $3m.
This amounts to 25 per cent of the total risks, while 75 per cent was taken by foreign reinsurers.
The Director, Policy and Regulation, NAICOM, Mr Pius Agboola, said the commission had in recent years tried to raise the capital of the underwriters to enhance their capacity to underwrite more risks.
Some of the attempts, he added, were the risk-based capital of the firms and the tier-based recapitalisation.
Agboola said, “The insurance retention capacity is the maximum amount of risk retained by an insurer per policy/cover.
