Exclusive: 524 Brokers Contesting NNPC’s Plum Insurance Accounts
About 524 insurance brokers are bidding to participate in the 2020/2021 Consolidated Insurance Package (CIP) of the Nigerian National Petroleum Corporation (NNPC), known as one of the juiciest accounts in the country.
The bid process is to select insurance brokers that will offer professional advice for one year from 2020, to the corporation on the protection of its assets in the oil and non-oil categories.
The bid process which was thrown open after the 2010 exposure of the non-tendering of the selection process of insurers on the accounts for about 10 years, has since, drawn large participation because of the huge size of the account and also to satisfy the Nigerian Local Content Act hat specifies that 70 percent of the business must be placed in the local insurance market.
Some of the bidders at the Thursday exercise that held at the NNPC headquarters in Abuja said the results will likely be out by next month for the coverage that is likely to commence April 2020 and lapse March 2021.
The opening of the bids of the insurance brokers was conducted some days after that of the underwriters which produced 42 insurers’ bids for the plum account for the 2020/2021 coverage which premium on annual basis, always run into millions of dollar.
Breakdown of the total bids harvested according to sources at the Thursday exercise shows that 263 bids were for the Non-Oil assets while 261 insurance brokers bidded for the oil assets.
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The highest scorer in each of the two classes of the NNPC’s CIP will be appointed leader on each class of the business, and possibly, replace the duo of Hogg Robinson Insurance Broker and Worldmark Insurance Broker who are the current leaders.
Hogg Robinson leads on the Oil assets class while Worldmark is the leader on the Non-Oil Assets.
The 524 brokers will be scored on the requirements for the bid process which include provision of the certified true copy of their Certificate of Incorporation issued by the Corporate Affairs Commission (CAC), three years audited account covering 2016 to 2018 and duly certified by their regulator, the National Insurance Commission (NAICOM) and the Certified Tax Clearance.
Also, certificate from PenCom and certificate from the Industrial Trainng Fund (ITF) are also required of the bidders.
Others are professional indemnity policy, evidence that none of the directors of the bidders has interest in NNPC, Bank reference, staff and the company’s profile, profile and credential of those that will do the job if appointed, experience in the class of business been vied for, and also, the volume of businesses being handled by the bidders and the profile of their clients.
The bidders will also be scored based on the profile of the five of their biggest accounts, their NCRIB Certificate, Bureau of Public Procurement (BPP) certificate, certification, and the payment of N50,000 for the processing of their bids for the class of business being vied for.
A bidder at the bid opening confided in InsideBusiness that the exercise was witnessed by the Bureau of Public Procurement (BPP), the Nigeria Extractive Industries Transparency Initiative (NEITI), and NAICOM during which the corporation’s Group Managing Director, Melle Kyari insisted on the transparency of the selection process.
“The GMD insisted on transparency and asked those who might have parted with money to go and collect it back” noted one of the bidders.
After the appointment of the two leaders that will lead the two classes of the CIP, other pre-qualified brokers through the process will share the business based on their scores and offer brokerage services.
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