By  Patience SAGHANA
Royal Exchange Assurance of Nigeria (REAN) has reinforced its preparedness to fully explore all opportunities presented by the Federal Government’s local content policy which seeks to encourage more indigenous participation in the oil and gas sector.

Mr Olutayo Borokini, Managing Director of the company said that REAN is now better positioned to provide wider coverage for operators in the high risk oil and gas industry as well its marine sector.

He said, “We have been able to build internal reserves because our trend analysis indicates continual increment in our net retention based on our experience, prudence and resolve to be a major player in this field”

Describing the local content initiative of the Federal Government as a catalyst for the rapid growth of indigenous capacity in oil and gas, Borokini observed that increased capacity has given Royal Exchange additional leverage in the area of marketing as well as the wherewithal for prompt claims settlement.

The Nigerian Content Development Act 2010, which seeks to stimulate more Nigerian participation in oil and gas businesses, specifically reserves up to 70 per cent of risks in that sector for Nigerian insurance companies. It also provides that all insurance broking services should be rendered by local professionals and in exceptional cases, in collaboration with foreign professionals.

REAN boss said that in order to sustain the momentum achieved in the oil and gas sector in recent years, Royal Exchange has lined-up cutting edge training programmes for its technical staff on the oil and gas desk in conjunction with specialized overseas institutions. On the prospects of a rebound of the Nigerian financial sector, Mr. Olutayo Borokini expressed optimism that with the structures put in place by the nation’s regulatory authorities, especially with regards to risk management and corporate governance, the Nigerian economy will continue on a steady path of growth and consolidation.

Royal Exchange General Insurance Company Limited is a wholly owned subsidiary of Royal Exchange Plc, a group holding and asset management company.