Advantages of Membership
The principal attraction for members is OIL’s ability to provide long-term, secure, predictable and cost effective pricing and coverage through any market conditions or cycle.
- Membership is exclusive to energy companies
- Members are all shareholders/policyholders and have vested interests in the operation of the company.
- “Mutualized” sharing of losses
- Easy annual renewal.
- Premiums are derived by formula and purely loss/expense based i.e. no micro underwriting
- One policy form for all members per the OIL Shareholders’ Agreement
- OIL uses gross assets from audited balance sheets while the market uses insured values
- Provides hedge against a frequently volatile commercial insurance market
- One of the broader policy forms currently available
- Expense ratio = approximately 3-6% (Far lower than commercial market)
- Rate predictability through “Lock in” plan
- Members influence product capability/evolution and developments
- Generates long-term benefits for shareholders
- Energy peer forum/networking opportunities