IRA shuts down two insurers, advises policyholders to seek alternatives
Business
By
David Njaaga
| Dec 08, 2023
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.
READ MORE
Nursing courses top demand as KUCCPS places 310,502 students
From dorm fires to street protests; how a decade of school unrest shaped youth dissent
Push to review occupational safety and health laws
President Ruto calls for fairness, partnership at Global Financing Conference
The Finance Bill that soured Ruto's relationship with Gen Zs
Govt concludes University placement and commits to funding
Our youth are still sufferring a year after protests, Babu warns
Hope in Faith: Kenyans confident Kipyegon will break 4-minute barrier
Mr President, take responsibility of Wednesday's deaths, destruction
Government urges radical reforms to close water access gap by 2030
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.