The Independent Uganda: You get the Truth we Pay the Price
The oil and gas industry is inherently high-risk, involving massive investments, operational hazards, and environmental concerns.
Kampala, Uganda | JULIUS BUSINGE | The Insurance Consortium for Oil and Gas Uganda (ICOGU) has emerged as a critical player in Uganda’s rapidly evolving energy sector, providing tailored insurance solutions to address the unique risks associated with oil and gas exploration and production.
This was highlighted during the 2025 ICOGU Energy Symposium held in Kampala on March 19, themed “The Role of Insurance in the Energy Transition.” The event brought together key stakeholders, including regulators, insurers, and energy developers, to discuss the sector’s challenges and opportunities.
Jonan Kisakye, the Secretary for ICOGU and CEO of the Uganda Insurers Association (UIA), emphasized the symposium’s importance in fostering collaboration and knowledge-sharing. He noted that the event aimed to share developments in relation to insurance products and services tailored to the needs of International Oil Companies (IOCs) and other energy-specific customers.
Kisakye, however, said there’s need for the insurance industry to adapt to technological advancements, climate change, and regulatory shifts to effectively manage risks in Uganda’s evolving energy sector.
ICOGU, formed by licensed non-life insurers in Uganda, operates on a co-insurance model managed by Uganda Reinsurance Company. This innovative approach pools the expertise and capacity of local insurers to effectively cover high-risk exposures in the oil and gas sector, such as accidents, environmental damage, and oil spills.
Since its inception, ICOGU has generated a total of Shs200bn in premiums, demonstrating its ability to mobilize resources and provide financial security for large-scale energy projects.
Despite a temporary decline in written premiums in 2024, ICOGU has shown remarkable resilience, with 2025 figures already surpassing last year’s totals, signaling a strong recovery and positive growth trajectory.
Addressing high-risk challenges
The oil and gas industry is inherently high-risk, involving massive investments, operational hazards, and environmental concerns. ICOGU plays a fundamental role in addressing these challenges through comprehensive insurance solutions that cover asset damage, business interruption, liability claims, and environmental protection.
By offering policies that address pollution liability, decommissioning risks, and ecological restoration, ICOGU ensures that Uganda’s energy projects are not only financially secure but also environmentally responsible.
As Uganda transitions towards a more diversified energy sector, Humphrey Asiimwe, the chief executive officer of Uganda Chamber of Energy and Minerals (UCEM) said insurers should continue to be at the forefront of innovation, developing new insurance products tailored to green energy projects, carbon capture initiatives, and clean technology investments.
The consortium is also working to strengthen reinsurance capacity to handle large-scale claims, particularly in complex energy projects. By enhancing public-private partnerships and promoting risk-sharing mechanisms, ICOGU is helping to support sustainable energy financing in Uganda.
Meanwhile, the Insurance Regulatory Authority of Uganda (IRA) has been instrumental in fostering a resilient and responsive insurance industry.
The IRA is working on policy and regulatory adjustments to accommodate emerging risks and align with global best practices. In a significant move toward sustainability, the IRA, in partnership with Financial Sector Deepening (FSD) Africa, has developed an Environmental, Social, and Governance (ESG) Framework for the insurance sector. This framework aims to integrate best practices into the industry, ensuring that Uganda’s insurance sector aligns with global shifts toward sustainability and renewable energy.
Industry leaders weigh in
Ernest Rubondo, the executive director of the Petroleum Authority of Uganda (PAU), highlighted the significant contributions of the insurance sector to the country’s burgeoning oil and gas industry. He noted that 36 insurance companies are currently registered on the National Supplier Database (NSD), with 13 entities, including ICOGU, actively providing services at both Tier 1 and Tier 2 levels of the oil and gas sector.
These companies have collectively facilitated insurance coverage worth US$53.2 million, covering areas such as construction all risks, third-party liability, and medical insurance for staff.
Rubondo also pointed out emerging opportunities for the insurance sector, particularly in specialized areas such as cyber insurance, carbon credit insurance, and environmental liability insurance. He stressed that as Uganda’s oil and gas sector continues to grow, the demand for innovative insurance products will increase, especially in areas like pipeline insurance, marine cargo insurance, and well control insurance – an area that may require the pulling of resources to meet sector demands.
Richard Scott, ACII Global Head of Renewables at Oneglobal Broking, emphasized that the transition from fossil fuels to green energy is fraught with complex challenges that require careful consideration.
In his keynote address, Scott highlighted critical issues such as high investment costs, climate risks, and lack of energy access, which can hinder the adoption of renewable energy in developing economies.
He also pointed out infrastructure deficits, lack of grid interconnectedness, and insufficient energy diversity as barriers to a seamless transition. Additionally, Scott underscored the importance of addressing human capital gaps and socio-cultural issues, which can impact the acceptance and implementation of green energy solutions.
