Latest update March 24th, 2025 7:05 AM

Guyana's largest selling daily and New York's most popular weekly

Latest News

Insurance industry reduced to mere bystanders

Dec 10, 2022 Letters

Dear Editor,

We wholeheartedly share the frustration of Guyana’s insurance companies over Exxon’s handling of the Yellowtail project insurance ‘tender.’

Since our first visit to Georgetown in 2018, we have encouraged the local market that they can and should have a real and meaningful role in the insurance of all oil and gas projects in Guyana. It has, therefore, been heartening to see the progress being made with the establishment of the local insurance consortium, which seems the right vehicle to act as the local carrier for these risks. As the contributor to your article so rightly recognises, local industry involvement is essential to protect Guyanese assets on behalf of the Government. Furthermore, there can be no real knowledge or skills transfer if local insurers are reduced to a fronting role, much less any capacity growth or commensurate commission earnings.

Whilst perhaps not surprising, it is nevertheless objectionable that Exxon be permitted to conduct the insurance tender in this manner. The process rides roughshod over the spirit of Guyana’s Local Content Law and reduces the insurance industry to mere bystanders. It simply cannot be right that local companies will fight over a fronting fee of a few thousand dollars when, by rights, they should be earning hundreds of thousands of dollars in reinsurance commissions. This commission is rightly allowed by the international reinsurance market, but without local control of the process will instead be rebated back to Exxon by their international broker. It does not have to be this way. We believe your Insurance Regulator and Government Ministers already have the tools at their disposal to stop Guyana’s insurers being reduced to ‘chicks fighting over feed’! We can only hope they use them.

Sincerely,

Chris Jennings

Operations Director

t    +44 (0)207 481 4114

m  +44 (0)7765 252 695

Total Risk Solutions

78 Cornhill, London, EC3V 3QQ

trsconsultancy.com

Similar Articles

The Glenn Lall Show|| March, 17th, 2025

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Waramuri stuns Vreed-en-Hoop 7-1, as Bush Lot topple Ann’s Grove

Waramuri stuns Vreed-en-Hoop 7-1, as Bush Lot topple Ann’s Grove

Mar 24, 2025

-Milo/Massy U18 Football C/ship Round II Kaieteur Sports- The Petra Organisation wrapped up the second round of the 2025 Milo/Massy Under-18 Boys’ Football Championship yesterday at the Ministry of...
Read More
NSC, Office of the DPP host meeting on Criminal Law and Sexual Offences Act

NSC, Office of the DPP host meeting on Criminal...

Mar 24, 2025

Hetmyer’s Blazing Knock in Vain as Sunrisers Sink Royals in Run-Fest

Hetmyer’s Blazing Knock in Vain as...

Mar 24, 2025

GOA and Paraguayan Olympic Committee sign historic Memorandum of Understanding

GOA and Paraguayan Olympic Committee sign...

Mar 24, 2025

Archery Guyana commends Chung’s outstanding performance

Archery Guyana commends Chung’s outstanding...

Mar 24, 2025

Reliance Hustlers delighted for Youth Programme support from First Lady

Reliance Hustlers delighted for Youth Programme...

Mar 23, 2025

Features/Columnists

  • Development for whom?

    Peeping Tom… Kaieteur News- The Vice President of Guyana, Bharrat Jagdeo, has declared with great confidence that there... more

Publisher’s Note

Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.

Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]