NWSC inaugurates own Captive Insurance Company for effective risk management as the new Board of Directors swears in.
Drake Nyamugabwa
A Captive Insurance Company according to experts is a wholly-owned subsidiary created to provide insurance to its non-insurance parent company, essentially a form of self-insurance whereby the insurer is owned wholly by the insured typically established to meet the unique risk-management needs of the owners or members.
Additionally, they provide potentially significant tax advantages, which can prove integral to longevity and company profitability. Captives are formed to cover a wide range of risks
National Water and Sewerage Corporation inaugurated the Captive Insurance Company to provide for a more effective risk management framework in NWSC’s Transformational & Sustainable Service Delivery drive and swore in a new Board of Directors.
During the first board meeting and inauguration of the National Water and Sewerage Corporation Captive Insurance Company held at the NWSC International Resource Center (IREC) the new Board members took an oath and a new Chairperson was sworn in.
Speaking at the meeting, the Captive Insurance Company Board Chairperson, Dr. Asumani Kinobe gave the initiative a nod.
“Participation of Insurance companies in Uganda is less than 19%. I’m excited to work under the Umbrella of NWSC, a good institution that has achieved greatness,” he said.
Dr. Kinobe, said that the move will help NWSC better manage its finances. It is an indication that NWSC is being cautious with acquisition costs. He congratulated the NWSC management upon this creative and innovative management approach and pledged to work with fellow board members to realize the goal of the company.
“We shall observe the functional leadership model i.e. group, task, and individual needs with equal attention. We are also grateful for the Governance at NWSC, which is a benchmark for many institutions. We shall work to grow the institution.” he said.
According to sources from NWSC, the benefits of the captive insurance company will include: Processing of NWSC claims faster i.e Workers Compensation and Group Personnel Accidents (GPA), optimization of costs and thus enhancing NWSC’s financial sustainability, annually, NWSC pays 2.6billion in annual premiums per year. This will, by implication, remain within NWSC instead of paying it to outsourced Insurance Companies, NWSC will not pay commissions as has been the case subsequently making savings, the underwriting of NWSC risks will be fast since the responsible staff will be housed within the NWSC Captive Insurance Company and, there will be significant Long Term Growth in the asset portfolio of NWSC. i.e new projects once complete will be part of the NWSC asset portfolio which gives NWSC more comprehensive cover.
The New Board members: Independent Directors include; Dr Asumani Kinobe, Ms Catherine Auma, Mr Dennis Twahika and, Mr Eric Kenneth Lokolong. Whereas the non-independent Directors include; Dr Eng Badru Kiggundu, Ms Racheal Ciconco Mbabazi and, Dr Eng. Silver Mugisha.
