22 Local Insurance Companies on Oil and Gas Consortium
02 Sep, 2021
22 Local Insurance Companies on Oil and Gas Consortium

Recently, the insurance industry in the country has established insurance consortium for insuring large and valuable projects without relying on foreign insurance companies as it was before.

22 local insurance companies have joined together to create one fund that will cover the risks on large projects and this consortium particularly for investment in the oil and gas sector, namely the Insurance Consortium for Oil and Gas.

The inauguration ceremony of the Consortium took place at the Johari Rotana Hotel, Dar es Salaam where the Deputy Minister of Finance and Planning Hon. Hamad Chande (Mb) graced the event. In his inaugural speech Hon. Chande said that, in the past due to liquidity, capital and insolvency of insurance registrants could not cover such risks in large projects like oil and gas.

Hon. Chande commended the alliance and noting that, it will help insurance companies to increase their ability to withstand risks, which will also help the retention of insurance premiums in the country for the development of the nation. He took the opportunity to ask those participating in the consortium to ensure that they use the opportunities well for the development of the country.

On his part, the Commissioner of Insurance Dr. Baghayo Saqware explained that the move to have a special consortium for oil and gas is to join the forces of insurance companies so that they can protect against disasters together as the muscles of liquidity and capital become stronger. He informed Hon. Deputy Minister that due to the great economic revolution and development carried out by the Government currently the need for consortium is great because investments and large projects require the presence of consortium thus leading to insurance service providers in our country have decided to take that opportunity.

In addition, the Insurance Commissioner said, the hope of the Authority is to see the contract signed by the insurance companies for the purpose of this union (consortium) working according to the agreement in the contract. He emphasized that, TIRA will continue to monitor its performance to ensure that the specified benefits are productive for the nation, citizens and investors in the country.