Insurance Consortium Members tipped to take lead in energy transition Agenda

_________________

The Insurance Consortium for Oil and Gas Uganda (ICOGU) members have been advised to be more strategic and generate tailored insurance solutions required by the oil and gas sector.

The call was made by the Insurance Regulatory Authority (IRA) CEO, Ibrahim Kaddunabbi Lubega, during the 2025 Energy Symposium organized by the Insurance Consortium for Oil and Gas Uganda (ICOGU) at Sheraton Kampala Hotel under the theme: “the role of insurance in the Energy Transition.”

Managed by Uganda Reinsurance Company, ICOGU pools expertise and capacity to effectively cover the sector’s high-risk exposures, such as accidents, environmental damage, and oil spills. This initiative enhances risk retention within Uganda, ensuring that local insurers play a significant role in underwriting these risks.

“As Uganda advances towards commercial oil production and embraces the broader energy transition, the insurance sector must rise to the challenge of providing financial security, mitigating risks and ensuring the sustainability of investments in this dynamic sector.

The global energy landscape is undergoing a significant transformation driven by technological advancements, regulatory shifts and the growing need for sustainability. Uganda’s energy sector is evolving with the twin objectives of developing its petroleum resources while also investing in renewable energy sources,” Lubega added.

He explained that the transition presents both opportunities and risks which on one hand enables economic growth, infrastructure development, and job creation while on the other introduces complex challenges such as environmental risks, project financing uncertainties, and regulatory compliance.

Jonan Kisakye, the Uganda Insurers Association CEO highlighted the need for insurers to buffer their financial muscles so as to write off all the available businesses in the oil and gas sector.

“We are currently conducting business in the Tilenga, Kingfisher and East African Crude Oil Pipe Line fields and we are confident we shall take on more projects as they come,” Kisakye explained.

Since its inception, ICOGU has significantly contributed to premium generation and risk retention, with a total contribution of $22m about sh82bn to date.

However, in 2024, written premiums declined by 82% compared to 2023. Encouragingly, 2025 has seen a strong recovery, with premiums surpassing last year’s total.

The oil and gas industry is inherently high-risk, involving large-scale investments, operational hazards and environmental concerns.