Bonws Seguros recently organized the 2nd Edition of the Oil&Gás Insurance Forum. The event, which took place at CCTA, in Luanda, aimed to discuss market trends, industry challenges, address best practices, and launch and exchange ideas.
The forum was attended by more than 150 guests with an active role in this market, namely members of ARSEG, the insurance regulatory body in Angola, and members of the administration of other insurance companies. In addition to Bonws Seguros, the list of speakers included representatives from the World Compliance Association, the American Chamber of Commerce in Angola, Ernest & Young, and Agostinho Neto University.
One of the topics under discussion at the event was the coinsurance model currently in force in Angola in the petrochemical sector, which has only one leader, who is responsible for underwriting risks and inviting other insurers to participate in part of these risks. One of the disadvantages highlighted in the forum was that in this model, the entire risk assessment process and decision-making, determining the premium to be charged, the terms of the contract and monitoring the decisions taken, are the responsibility of the leader alone.
Luís Vera Pedro, CEO of Bonws Seguros, said that the fact that there is only one leading the process means that there is no evolution, and there is no technical learning on the part of other insurance companies. In his opinion, the involvement of other co-leaders would enable know-how to the extent that, “it is important to train local staff for insurance activities, whether in the oil sector or of a general scope”.
According to Luís Vera Pedro, if there is a framework that allows several insurers in an “insurance pool” to carry out the underwriting, and they are responsible for analyzing this risk, even if it is partly placed under reinsurance, it brings advantages from a technical and financial point of view. “In the model we have in place, most of the premium is placed with reinsurers outside the country. The insurance pool model we propose is used in markets in other countries, and has the advantage of avoiding capital outflows from Angola, through the creation of a joint financial cushion between the state, insurers and reinsurers.”
“The more retention remains in Angola, the more wealth can be created for the country”made it known.
“The work that our counterpart Ensa is doing is very responsible work. In no way do I question the responsible way in which they look at this matter. What I want, in some way, is to help, and I think there will be other insurers on the market that will want to be part of this solution, which is to share the responsibility between those who believe they are capable or whose capacity has been verified”, he clarified.