EIG was established in 1993 to act as Attorney-in-Fact and to manage the operations of the Energy Insurance Reciprocal (EIR). A licensed Reciprocal in the province of Alberta, EIR is an alternative risk financing mechanism for Canadian energy companies.
EIG provides energy companies with specialized, comprehensive, cost effective insurance and risk services that preserve stable, long-term rates.
As Attorney-in-Fact for EIR, EIG is responsible for providing insurance and risk services to EIR Subscribers; and for effectively marketing EIR as an insurance alternative to Canadian energy companies.
EIG holds an Insurance Agent’s License, which allows us to deliver a wide range of insurance products to the Subscribers of EIR. We also provide comprehensive Risk Management services to both EIR Subscribers and energy companies nationwide.
Comprehensive insurance and risk management solutions for Canada's energy companies.
What is a Reciprocal?
A: Reciprocal is an unincorporated group of individuals, corporations or entities that exchange contracts of insurance through common Attorney-in-Fact. The purpose is to spread the risks of loss among all of the members. Contracts can only be entered into with the Subscribers to the Reciprocal. The Attorney-in-Fact handles the Reciprocal’s daily insurance operations including managing finances, making underwriting decisions and claims administration.
A: “Reciprocal Insurance Exchange” is recognized in the Insurance Act of Alberta (the Act) as “a group of Subscribers exchanging Reciprocal contracts of indemnity or inter-insurance with each other through a principal attorney.” The Superintendent of Insurance for the Province regulates Reciprocals to ensure that certain reserve requirements are met as stated in the Act. The Government issues an operating license to a Reciprocal annually.
Why was EIR formed?
A: EIR was formed in 1988 after an extensive feasibility study was conducted by 50 Calgary companies that were discontented with paying high commercial rates for general liability insurance coverage.
What is the financial responsibility of an EIR Subscriber?
A: A premium is charged to each Subscriber for the purchase of various contracts of insurance. A Subscriber’s liability to EIR is limited to the premium paid by the Subscriber.
“Looking for a better way we gave EIG a chance. They were locally based with in-depth knowledge of the insurance needs for junior oil and gas producers, and they had a Board of Directors made up predominantly of people from the oil and gas industry. I’ve never regretted our decision to switch and stay with EIG – in fact we’ve become strong supporters because of the rewards we receive and the transparency that guides every one of their actions with us.”
George Paulus
President
Zapata Energy Corporation