Uganda Insurers Association was represented by its member & leader of the Insurance Consortium of Oil & Gas Uganda (ICOGU) - UAP Old Mutual at the 2-day Sectoral Linkages Conference 2024 aimed at exploring the growing needs for financing & risk management as a tool for effective engagement of Ugandans & Ugandan enterprises in the Oil & Gas industry, the existing opportunities, challenges & how best they can be overcome. The conference was organized by the Petroleum Authority of Uganda (PAU) under the theme: Linkages leveraging Uganda’s Oil & Gas sector with other sectors of the economy to enhance broad-based growth. It took place from 11th to 12th April, 2024 at Speke Resort Munyonyo.
UAP Old Mutual General Manager - James Maguru took part in the fourth panel session of Day Two where the panelists discussed the financing opportunities created by the oil and gas sector. They explored the aspect of financing and risk management as a tool for effective engagement of Ugandans and Ugandan enterprises in the oil and gas sector. In his presentation, James explained the insurers’ involvement in the Oil & Gas sector, highlighting ICOGU’s role in insuring projects like the East African Crude Oil Pipeline (EACOP) which is a 1,443km crude oil export pipeline that transports crude oil from Kabaale, Hoima City in Uganda to the Chongoleani Peninsula near Tanga port in Tanzania, Tilenga & Kingfisher oil fields in the Albertine region. He noted that the insurance industry has collaborated with other financial institutions like banks to support local contractors’ capacity & ensure they have collateral security.
James reaffirmed the insurers’ ability to cover all related risks & pay claims through an array of products including employee benefits (Pension plans), Education plans & Medical insurance. He further elaborated on the upstream products like the Contractors All Risks (CAR) which covers all risks associated with complex constructions, Liability insurance, Marine insurance & Political risks insurance among others. Because of its complex nature, James encouraged Oil & Gas sector players to involve insurers in risk assessment so that it’s easier for the insurance industry to tailor the right policies that cover the exact risks that they are likely to face during operations which will in turn save them a lot of money.
Other panelists included: Peter Rumanzi from the Petroleum Investment Reserve, Eva Ssewagudde from Uganda Bankers Association (UBA), Kimuli Faith Okong from National Social Security Fund (NSSF), Nicholas Kiiza from Stanbic Bank & Steven Assimwe from the Private Sector Foundation Uganda (PSFU).
The Insurance Consortium for Oil and Gas Uganda (ICOGU) is a body consisting of local licensed Non-Life Insurance Companies to provide insurance cover to the Oil & Gas sector under a co-insurance arrangement. It comprises 14 local insurance companies to ensure that locally domiciled risks in the sector are insured locally.
