The Ghana Oil and Gas Insurance Pool (GOGIP) raked-in a gross premium income of about GH¢302million (US$63million) in 2018 and GH¢267million (US$48million) in 2019, representing a dip of about 12%.
According to latest reports from the National Insurance Commission (NIC), GOGIP is made up of 22 non-life insurance company and has been given the sole mandate to provide insurance cover for the upstream oil and gas business in Ghana.
The report also stated that the oil and gas business experienced a dip of about 12% – from GH¢302million in 2018 to GH¢267million in 2019. This is in line with the global trend in which there is a slowdown of investment into the oil and gas market.
However, in a progressive effort to improve local participation in the oil and gas risk, the Commission has issued guidelines which permit interested non-life companies to arrange reinsurance support to enable them accept oil and gas businesses on facultative business.
As a result, the applications of five non-life companies have been approved by the Commission. This direct participation by local insurers is aimed at increasing local capacity and also building technical capacity in oil and gas insurance underwriting.