A mining process.[Photo/Kbc.co.ke]
CIC Insurance has announced that it is now offering covers for the extractive sector which includes mining, oil and gas industry players.
Extractive refers to processes that involve the extraction of raw materials from the earth to be used by consumers. The extractive industry consists of any operations that remove mineral and aggregates from the earth.Speaking during the 12th Annual Association of Insurance Brokers in Kenya (AIBK) Conference at a Kwale hotel, Joseph Kamiri, CIC Insurance Group General Manager for Marketing and Distribution said that the firm had decided to venture into the nascent industry strategically as it continues to open up and attract more local players.
“Extractive businesses such as mining, oil and gas drilling are high capital investment ventures and only a few international firms are able to get into it since costs associated with prospecting in mining for instance are considered sunken costs if no minerals are found,” said Kamiri.
He noted that CIC had invested in the technical capacity, including industry experts in the team and formed the necessary global reinsurance linkages that are useful to providing the mining insurance cover. CIC envisages the industry players suffering losses from disruptions due to varied factors. When production and supply chain points are affected, interruptions can often be lengthy and significant leading to unforeseen losses that need to be covered.
The CIC Mining Insurance solution, said Kamiri, also addresses the needs of other support providers including staff resourcing, vehicle leasing, movement of raw materials and machinery. This extends to construction companies setting up structures that accommodate staff and to security providers, making the solutions holistic for the whole mining and extractive sector ecosystem.