As a rule, Romanian oil and gas companies only sign insurance policies when these are compulsory, unlike Western operators, states Karina Rosu, global accounts executive with insurance brokerage firm Ka Ro Servicii de Asigurari, a representative of AON.
Large oil companies prefer having captive insurance firms to insure their goods and operations. In Romania, the only company of this type is LukOil Asito, operating within Russian group LukOil.
"In Romania, insurance policies are signed when a certain contract or law stipulates it. For instance, one such case is that of an offshore rig located on international waters," explained Karina Rosu, during a workshop organised by Petroleum Club and Ka Ro Servicii de Asigurari.
SNP Petrom, the biggest oil company on the Romanian market, has insured a number of its assets, but holds no insurance policies for refineries or other operations.
"Petrom has insured a number of its assets, but I cannot tell you which. At the level of refineries, investments are high, targeting environment quality, cost reduction, as well as increased security in exploitation. Moreover, periodical checks are conducted to secure the best functioning of units," said Gheorghe Constantinescu, Petrom general manager.
"We have ordered global risks assessments. Why should we be moving faster?" added Constantinescu.
Nevertheless, besides the Rompetrol private group and Distrigaz Sud gas distributor, Petrom is among the few companies with departments or teams dedicated to risk management activities.
Rompetrol has worked with companies such as AIG, Allianz and Omniasig, while British company Lloyd's is the reinsurance company.
However, what does the use of risk management and "captive" insurance companies entail?
"Norsk Hydro was set up in 1905 and has had a captive insurance company since 1920, through which we insure our assets and operations. Shell and all the big companies hold such captive insurance companies. The main target is to insure and protect the assets of a high-risk sector, such as the oil industry. If they post losses, companies go to the insurance market to get their money," said Per Arne Myklebost, an insurance and risk management director with Norsk Hydro Norwegian oil group.
The company logs an annual turnover worth 20 billion dollars and develops worldwide operations.
A captive insurance company could be of use to the two gas distributors Distrigaz Nord and Distrigaz Sud, as well as to Romgaz, according to insurance industry officials.
adrian.mirsanu@zf.ro
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