The Nigerian National Petroleum Corporation (NNPC) has appointed Custodian and Allied Insurance Plc and Hogg Robinson as lead insurer and broker respectively for its 2016 oil insurance business.
It was learnt that while the duo where chosen for the oil business, firms to handle the non oil are still under rap, as the corporation is yet to fully unveil brokers and underwriters considered for the oil and non oil businesses.
NNPC is handling the process with caution so as to avoid petition from aggrieved bidders. It was also gathered that the NNPC has been prudent in handling the deal to meet President Muhammadu Buhari’s quest to entrench transparency in government’s businesses, Ispen reported.
Our source noted that some brokers that bidder for the businesses where disqualified owing to delays in renewing their licences with the National Insurance Commission (NAICOM).
It was gathered that brokers and underwriters are presently scrambling to be included in the multi-billion deal.
Last year, Mutual Benefits Assurance Plc, was appointed the principal underwriter for the risk of the corporation which was insured for N14.66 billion ($73.7m).
The premium for the business fell slightly from $79.4m in 2014 to $73.7m in 2015, although, the premium earned from the oil and gas business can be huge, claims can also be enormous when there is a major loss.