CIC Insurance has announced that it is now offering covers for the extractive sector which includes mining, oil and gas.
Speaking during the 12th Annual Association of Insurance Brokers in Kenya conference in Kwale County yesterday, CIC Insurance Group’s Joseph Kamiri said 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,” Kamiri said.
The cover 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.
“Our solution focuses on all mobile assets, and can cover all machinery and equipment either above ground and underground,” Kamiri said.
