Gabriel Serrano, National Property Insurance Manager, Tecniseguros

• Interview

How would you assess Tecniseguros’ experience in Ecuador’s oil sector, and how can the experience be used for mining projects?

Mining is on its way to becoming a strategic sector in Ecuador, though our experience has not been that extensive yet, having several industrial projects that only started in 2019. Despite this limited track record, Tecniseguros has been involved in prominent projects with companies such as Lundin Gold, with whom we have worked since their arrival in Ecuador in 2014, and with Ecuacorriente. This journey has been supported by our experience in the oil sector, where about 80% of all the private companies in Ecuador are serviced by Tecniseguros, including Repsol, Agip Oil, Petrobell, and ENAP, among others. Additionally, Tecniseguros is the only local representative of Marsh, the number one worldwide broker with extensive expertise in mining projects in Chile, Canada, and Peru. With them we have also been able to bring the expertise we gained elsewhere to our clients in Ecuador, supporting the development of mining projects across the country. We see similarities in insuring the oil and mining businesses, and, as a broker, we guide our clients when choosing the best product for their needs. Projects tend to be small at the beginning, which is when we offer advisory services to companies to analyze the risks related to their projects and future operations.

To what extent does Tecniseguros cover the risks of mining companies throughout the length of their project?

Mining is a risky activity. It involves heavy machinery, drills, explosives, and other procedures, meaning the insurance companies in Ecuador that can cover these kinds of risks are limited. Taking operational risks aside, the country also has legal risks. Though there have been improvements in this regard, there is no reinsurance appetite at the moment that can provide coverage for political risks in our country. Tecniseguros is not only a broker that looks for the best terms and conditions for its clients regarding their insurance programs; we also work with our clients in risk management programs to improve their day to day risks, which helps control the loss ratio and find better insurance policy conditions. ✖