With projects like Tilenga, Kingfisher, and the East African Crude Oil pipeline, Ugandan insurers are progressively securing risks in the oil and gas industry. Local insurers have retained some risks locally, notwithstanding their difficulties in persuading sizable global reinsurers to de-risk projects in the Albertine. Targeting significant international reinsurers like Munich Re, Hannover Re, and SCOR, the #StopEACOP campaign presented difficulties.
Combining local resources to reduce risk in the oil industry has been made possible in part by the Insurance Consortium for Oil & Gas Uganda (ICOGU). With over $24 million in premiums written to date, ICOGU has demonstrated success even if it only retains a tiny fraction of the risk domestically. With pooling resources and increased capacity, the Consortium has negotiated advantageous terms for insurance companies operating in the oil and gas sector, enabling them to take on riskier ventures.
With ICOGU managing contracts for the Tilenga, Kingfisher, and East African Crude Oil pipeline projects, premiums for 2023 show improvement. The intricacies of insurance and the need to comply with regulatory frameworks presented difficulties for the Consortium when negotiating advantageous terms with foreign insurers.
The insurance industry in Uganda continues to face difficulties, especially in reinsurance. Only Kenya Reinsurance Corporation Uganda – SMC Limited and Uganda Re-Insurance Company Limited were recognized as reinsurance businesses by the Insurance Regulatory Authority as of the end of 2023. To make sure a bigger share of insurance premiums stays in the nation, several stakeholders support creating a reinsurance fund.
