Increasing retention for energy risks

The National Insurance Commission (NAICOM) has revealed that the retentions of energy risks offered by local insurers, increased from 6% to 30% in three years. This increase results from the promulgation in 2010 of a law (Nigerian Local Content Act 2010) governing the placement of oil and gas risks. According to NAICOM, the enforcement of this law and the training of labor force will take time. To retain more premiums on the local market, the regulatory authority is also encouraging insurers to place risks on non-proportional reinsurance and no longer on quota share basis.