Insurance companies urged to have adequate capital

Apr 24, 2012

Insurance companies have been urged to ensure they have adequate capitalization to capture market of the oil and gas industry.

By Wilfred Sanya 

Insurance companies have been urged to ensure they have adequate capitalization to capture market of the oil and gas industry.

“The oil and energy industry is arguably the most capital intensive industry with huge investments in technology, equipment and human resource development,” said the Chief Executive officer Insurance Regulatory Authority of Uganda, Ibrahim Kadunabi.

He added that they are faced with inadequate financial capacity and limited technical know how to respond to the aforementioned insurance needs.

“This region is most likely to experience the perennial problems of premium flights from our markets,” he added.

Kadunabi was presiding over the opening of three day training Kampala Serena hotel organized by Africa Reinsurance Corporation and insurance companies that deal in the oil and gas sector.

Participants have been draw from Nigeria, Egypt, Tanzania Kenya Ethiopia and Angola just to mention

He pointed out that with the discovery of oil and gas in our region attracted investment and insurers need to orient themselves to fully participate in what promises to be exciting insurance market for the predictable future.

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