Insurers’ body locked up in leadership wrangles
Apr 14, 2006
MARKET INTELLIGENCE<br><br>A LEADERSHIP dispute has broken out among insurance operators over the chairmanship of the Uganda Insurance Association (UIA).
MARKET INTELLIGENCE
By Charles Bwogi
A LEADERSHIP dispute has broken out among insurance operators over the chairmanship of the Uganda Insurance Association (UIA).
At stake, is the control of the recently formed Uganda Reinsurance Company (Uganda-Re), which has an influential seat on the Uganda Insurance Commission’s board.
Uganda-Re, the first local company to do reinsurance business, is a brain child of UIA.
Industry sources say being a UIA head, offers one’s firm an edge over others because of the marketing opportunities.
This has led to leadership wrangles among members for the chairmanship of UIA so as to control Uganda-Re.
UIA has influence over Uganda-Re, the source said.
A re-insurance company issues insurance policies and guarantees the obligations of the insurance companies.
It also offers covers to insurance companies, which its advocates think should be supported by all insurance companies firms.
However, this has not gone well with some members, especially the foreign-based operators.
Some UIA members feel the incumbent chairman, Geoffrey Kihuguru, is illegally bidding for a ‘third term’ despite serving his two constitutional term limits.
“For the first time in the association’s 40 years, we concluded an annual general meeting without a chairman after a constitutional disagreement with the outgoing chairman, who tried to manipulate members to get another term,†a source said.
But Kihuguru denied any manipulation.
“My first term, which began in 2003, was unique because it had four chairmen.
“I only served the last five months. Honestly, I thought I had served only one term.
“That is how divergent views emerged during the AGM,†he said.
The term in question spans from 2002 to 2003. It had Sam Ssebuwufu, who resigned. He was succeeded by Michael Black, who also left.
Black was replaced by Geoffrey Kiryabwire, who was later, appointed the Commercial Court Justice.
Kihuguru then took over. He was re-elected for the 2004/2005 term.
Kihuguru said during the AGM on March 17 that the controversy over his new re-election bid, was put to a select committee to seek legal advice on what constitutes a full term.
He said the committee ruled that five months in office did not constitute a term.
However, the ruling has caused mistrust among members.
“This is why the chairman was not elected during the AGM. But the executive committee was elected, and is now looking into the matter,†Kihuguru said.
A source said because of the leadership vacuum, certain business of the association can not be conducted.
Founded in 1965, UIA brings together all insurance companies in Uganda.
It is a self-regulating organisation for the industry.
The Insurance Statute compels all insurance companies to be its members.
By Charles Bwogi
A LEADERSHIP dispute has broken out among insurance operators over the chairmanship of the Uganda Insurance Association (UIA).
At stake, is the control of the recently formed Uganda Reinsurance Company (Uganda-Re), which has an influential seat on the Uganda Insurance Commission’s board.
Uganda-Re, the first local company to do reinsurance business, is a brain child of UIA.
Industry sources say being a UIA head, offers one’s firm an edge over others because of the marketing opportunities.
This has led to leadership wrangles among members for the chairmanship of UIA so as to control Uganda-Re.
UIA has influence over Uganda-Re, the source said.
A re-insurance company issues insurance policies and guarantees the obligations of the insurance companies.
It also offers covers to insurance companies, which its advocates think should be supported by all insurance companies firms.
However, this has not gone well with some members, especially the foreign-based operators.
Some UIA members feel the incumbent chairman, Geoffrey Kihuguru, is illegally bidding for a ‘third term’ despite serving his two constitutional term limits.
“For the first time in the association’s 40 years, we concluded an annual general meeting without a chairman after a constitutional disagreement with the outgoing chairman, who tried to manipulate members to get another term,†a source said.
But Kihuguru denied any manipulation.
“My first term, which began in 2003, was unique because it had four chairmen.
“I only served the last five months. Honestly, I thought I had served only one term.
“That is how divergent views emerged during the AGM,†he said.
The term in question spans from 2002 to 2003. It had Sam Ssebuwufu, who resigned. He was succeeded by Michael Black, who also left.
Black was replaced by Geoffrey Kiryabwire, who was later, appointed the Commercial Court Justice.
Kihuguru then took over. He was re-elected for the 2004/2005 term.
Kihuguru said during the AGM on March 17 that the controversy over his new re-election bid, was put to a select committee to seek legal advice on what constitutes a full term.
He said the committee ruled that five months in office did not constitute a term.
However, the ruling has caused mistrust among members.
“This is why the chairman was not elected during the AGM. But the executive committee was elected, and is now looking into the matter,†Kihuguru said.
A source said because of the leadership vacuum, certain business of the association can not be conducted.
Founded in 1965, UIA brings together all insurance companies in Uganda.
It is a self-regulating organisation for the industry.
The Insurance Statute compels all insurance companies to be its members.