Ghanaian President Commends Int’l Energy Insurance

Ghanaian President, John Kuffour, has described the entry of the Nigerian insurer, International Energy Insurance Plc (IEI) into the Ghanaian market as a smart move. “The entry of International Energy Insurance at this time is a smart move because we probably have the single richest oil well in West Africa and as such many businesses are coming into Ghana,” Kuffour said, suggesting that the Nigerian insurer has a rich market to explore in Ghana.

President Kuffour who was commenting on the launch of the Ghana subsidiary of International Energy Insurance added, “We need the kind of business that International Energy Insurance is bringing at this very crucial time. It is an exciting period for us in Ghana; we are expecting lots of investments because of our oil, and underwriting of oil business is going to be one of such investments.”

Kuffour said he was happy that Nigerian institutions such as IEI are spearheading what commentators see as the second gold rush in Ghana, which used to be called Gold Coast. He said his government expects Nigerian insurance companies in the country to help turn around the Ghanaian insurance industry just as Nigerian banks have changed the nature of Ghanaian banking in the last few years, treating customers to an offering of service-oriented value-added banking business.

Similarly, the Nigerian brands in Ghanaian insurance are expected to ratchet up the competition and help to deliver improved services to policyholders.

The IEI subsidiary in Ghana is called International Energy Insurance Company Limited, Ghana’s first energy-focused insurer. IEI is one of Nigeria’s growing corporate representations in Ghana, most of which come from the financial and oil sectors of the economy.

IEI received praise from the Ghanaian government for being in the vanguard of businesses leading the economic integration of the West African sub-region. The Ghanaian President said he was happy to see International Energy Insurance, a Nigerian business coming to invest in Ghana, because such investment was “an example of the kind of integration that we need in West Africa and Africa generally. It is only when we come together in West Africa which has a market size of more than 300 million people that we will be taken seriously. But standing as individual countries with our small populations, everybody will just dump whatever they don’t want on us and that is what is happening now.”

Formally unveiling the IEI brand in Ghana, Mr. Nana Gaby, chairman of IEI promised a charter of beneficial engagement with the local business community: “We owe you a pledge of a well managed and socially responsible corporate citizen, worthy of your mention in any conversation anywhere in the world.”

IEI Ghana has already engaged 24 Ghanaian insurance professionals for its operations in the local market. The management of IEI Ghana said the new hires would be trained to acquire the skills and knowledge for energy insurance, which is a niche market in the industry.

Originally licensed in Nigeria as Global Assurance Company Limited, International Energy Insurance was reinvented with the current name when a new crop of investors acquired 70 percent stake in the company in 2003. During the industry consolidation of 2006/2007, IEI absorbed the Rivers State government owned Rivbank Insurance Company Limited. The company is backed by a foreign technical partner, AON Corporation, and a consortium of local and other foreign re-insurers.