GIC Re gets ONGC reinsurance contract

GIC Re has got the contract for the reinsurance of Oil & Natural Gas Corporation’s Offshore Package Policy programme 2018-2020. ONGC is the nation’s largest oil exploration and production company and many reinsurers were vying for its contract. GIC re got this contract after going through an international bidding process as mega risks cannot be fully absorbed in the domestic market alone and require placement in international markets for a better spread of risks. GIC Re, as the lead re-insurer, will have a 15 per cent share in the programme while the balance will be done by a number of international re-insurers. About 30 re-insurers had participated in the previous year’s programme. The reinsurance programme extends comprehensive coverage to ONGC’s upstream offshore assets valued at more than $40 billion. Upstream offshore assets include platforms, rigs, production complexes and pipelines. The total reinsurance policy premium for the programme is $12.62 million, a senior official of the GIC Re said. GIC Re will earn 15% of this as its share. The premium has come down by about 7.5 per cent as compared to the previous year’s premium because of the attractive claims history of ONGC, the official said.