To have the needed capacity required to explore opportunities in the oil and gas sectors driven by the Nigerian National Content Act, insurance industry operators have been urged to form consortiums.
Besides, they have been charge to explore joint venture opportunities to grow the sector and enhance contribution to GDP.
Simbi Wabote, executive secretary, Nigerian Content Development Board made the call during a presentation to the insurance industry operators at its Insurers Committee Meeting held in Lagos.
Wabote said the industry is losing millions of dollars to the international market from the oil and gas industry for lack of capacity and awareness on the side of the Nigerian players.
According to him, out of the total insurance business generated in oil and gas industry in Nigeria, only about 5 percent is retained locally, while the rest find their way off shore.
Speaking on the theme “Untapped Benefits of Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010” said “our 10-Year Strategic Plan that seeks to take Nigerian Content Value from current 26 percent to 70 percent will present tremendous opportunities for various sectors including service, financial and insurance sectors
He said that deepening Nigerian Content in the mid-stream and down-stream Oil & Gas sectors in a serious priority for the agency and that a number of strategies were being put in place for execution of an array of initiatives.
“In view of the above, we implore stakeholders in the Insurance Company to prepare for the upcoming wave of opportunities”
They should strive to add value to their business; explore formation of JVs or Consortiums to participate in major O&G projects
Meanwhile, the insurance industry has concluded plan to kick off the industry rebranding project by first quarter of 2018.
After its Insurers meeting in Lagos, the operators agreed to raise about 50 per cent of the funds required for the rebranding campaign from companies’ size of gross premium, while balance of 50 per cent will paid equally, while the National Insurance Commission will also contribute significantly, with part support coming this year and second tranche in first quarter of next year..
Managing Director/CEO, Custodian and Allied General Insurance Limited, and member of the publicity committee, Toye Odunsi, said the Commission’s support will encourage other operators to key into the rebranding project, which is expected to kickoff first quarter of next year.
On the budget for the project, he said some companies already included the project in their 2017 budget, while others will include it in their 2018 budget. He stressed that they are expecting companies to send their contributions before the end of December, so that they can have enough funds to be able to commence the campaign as planed next year.
Director General, Nigeria Insurers Association (NIA), Yetunde Ilori, said: “the industry branding will not just focus on a particular product because all the industry wants to do is to create awareness to get people to understand that they know what insurance offers.
“We appreciate the fact that even the demographics of the people that we are meant to serve have changed. So the question is how do we reach them? How do we get the message to them and how accessible are our products and services?
She noted that the campaign is geared towards encouraging Nigerians to rely on insurance even as they make adventures, and pursue their visions vigorously with the assurance that insurers are always there for them.