In a bid to pool local capacity to provide insurance solutions local insurance companies have come together to form the Insurance Consortium for Oil and Gas Uganda (ICOGU).
The consortium is conceived as a special purpose vehicle to cover medium and high risks to players in the East Africa Crude Oil Pipeline (EACOP) and the Refinery. The initiative was sanctioned by the Insurance Regulatory Authority (IRA) of Uganda, the industry regulator.
The ICOGU comprises of licensed local Non-Life Insurance Companies. Members of the consortium include Alliance Africa General Insurance Ltd, APA Insurance (Uganda) Limited, Britam Insurance Company (Uganda) Ltd, Excel Insurance Company Ltd, First Insurance Company Ltd, GoldStar Insurance Company Ltd, Liberty General Insurance Uganda Ltd, Jubilee Allianz General Insurance Company Ltd, MUA Insurance Uganda Ltd.
The others are NIC General Insurance Company Ltd, GA Insurance Uganda Limited, Pax Insurance Company Limited, Sanlam General Insurance Uganda Ltd, Statewide Insurance Company Ltd, TransAfrica Assurance Company Ltd, UAP Old Mutual Insurance Uganda Ltd, ICEA LION General Insurance Co. (U) Ltd, CIC General Insurance Uganda Ltd, Mayfair Insurance Company Uganda Ltd
The East African Crude Oil Pipeline Project (EACOP) is a US$ 5 billion pipeline that will run from Buliisa in Western Uganda all the way to Tanga port in Tanzania. The pipeline is expected to transport crude oil from Uganda’s Albertine oilfields to the port.
The ICOGU initiative is expected to enable local retention of resources, provide an effective spread of risks amongst Ugandan insurance and reinsurance companies, protect interests of Ugandans, and enhance local capacity in tandem with local content requirements. One of the expected benefits of EACOP is to unlock value from Uganda’s natural resources and represents a significant inward investment of some $5 billion across both Uganda and Tanzania.. The new corridor linking the two countries will bring benefits including the development of new infrastructure, logistics, and technology transfer as well as improving the livelihoods of communities along the route.
