Tanzania’s insurance sector pools resources as it targets oil and gas sector

Tanzanian insurance companies have grouped to create an oil and gas insurance pool that will enable the companies to support claims in the sector.

The pool according to the players will see local underwriters able to handle various risks in the sector associated with exploration, production, transportation, storage and marketing which is currently not in the scope of the insurers.

Speaking during an insurance stakeholder forum in Dar es Salaam head of business and marketing at Real Insurance Amani Boma said the arrangement will see each company contribute a certain amount to create a consortium that will underwrite property and services being offered by multinational oil and gas exploration companies.

“We are in the process of developing an insurance pool for local insurers to bring a certain amount as their retention share,” Boma is quoted by Tanzania Daily News.

The efforts by the stakeholders come even as the government is already preparing the local content policy that will enable local companies have a level playing field in the industry as the lack of awareness has led to few investments from the sector.

The industry is also said to have sought international consultants to guide the industry on the requirements of the industry.

Quoting an unnamed senior insurance official Tanzania daily News also revealed that the industry is also customizing cover for local suppliers in the sector.