IRA shuts down two insurers, advises policyholders to seek alternatives

Business
By David Njaaga | Dec 08, 2023
The Insurance Regulatory Authority places Xplico Insurance under statutory management and liquidates Invesco Assurance. [Standard, File]

The Insurance Regulatory Authority (IRA) has taken drastic action against two insurance companies that were facing financial difficulties.

In a statement on Friday, IRA said Xplico Insurance Company Limited has been placed under statutory management by the Policyholders Compensation Fund (PCF), effective December 8, 2023.

The authority said the insurer is no longer allowed to issue any new insurance contracts and advised existing policyholders to find other licensed insurers to avoid any risks.

IRA also announced that Invesco Assurance Company Limited has also been put into liquidation by the Official Receiver following two insolvency petitions filed by some of its claimants in Malindi and Nairobi courts.

The insurer's licence has been cancelled, and the Official Receiver has taken over its affairs.

IRA advised existing policyholders to also seek alternative coverage from other licensed insurers.

The PCF will compensate the affected claimants of both insurers as per the Insurance Act, CAP 487 of Kenya.

Share this story
Kenya's debt pile hits Sh13 trillion as borrowing draws scrutiny
Kenya faces a deep financial crisis as public debt hit Sh13.08 trillion in June, raising concern from both oversight bodies and political figures about how the government borrows and accounts.
Mukuru residents up in arms over 'sold out' Affordable Housing units
Uproar has greeted the affordable housing programme in Mukuru slums in Nairobi after some of buyers were informed that the units that had been paying had been sold out.
KEBS in the spot as poisonous alcohol crisis deepens
The Kenya Bureau of Standards is facing pressure to account for its role in the counterfeit alcohol crisis, as illicit drinks now account for an estimated 60 per cent of alcohol consumed in Kenya.
PSSF fund grows to Sh340.4b on investment diversification
Pension benefits under the Public Service Superannuation Fund (PSSF) grew by 41.08 per cent, closing the June 2026 period at Sh340.4 billion.
IM and HFCB join banking rivals in posting higher half-year earnings
I&M Group PLC and HFCB Group PLC posted higher half-year earnings, joining rivals in delivering results that have provided a rare bright spot against the backdrop of a tight domestic economy.
.
RECOMMENDED NEWS