NAIROBI, Kenya- In a significant shake-up within Kenya’s insurance sector, the Insurance Regulatory Authority (IRA) has announced the immediate placement of Invesco Assurance Company under statutory management.
The move comes as the insurer grapples with severe financial distress, effectively halting its ability to underwrite new policies.
As of August 14, 2024, Invesco Assurance has been barred from entering into any new insurance contracts.
This decision, as stated by IRA Commissioner of Insurance Godfrey Kiptum, aims to safeguard policyholders and prevent further exposure to financial risks.
In a clear message to current policyholders, Kiptum advised, “The insurer’s existing policyholders are advised to immediately seek alternative covers from other licensed insurers to ensure that there is no unnecessary exposure”.
In response to Invesco’s precarious financial situation, the Policyholders Compensation Fund (PCF) has been appointed as the statutory manager.
This appointment grants PCF the authority to oversee the company’s operations, with a primary focus on safeguarding the interests of affected claimants.
Under the provisions of the Insurance Act, Cap 487 Laws of Kenya, PCF is now responsible for initiating compensation for those impacted by Invesco’s financial difficulties.
The IRA’s decision to bring in PCF reflects a broader effort to stabilize the insurance sector and protect consumers from the ripple effects of an insurer’s collapse.
The fund will now embark on the critical task of compensating affected claimants, ensuring that policyholders are not left in the lurch.
For those holding policies with Invesco Assurance, the priority now is to secure alternative coverage.
The IRA’s recommendation is clear: policyholders should act swiftly to transfer their insurance needs to other licensed insurers.
This proactive approach is essential to avoid potential gaps in coverage and to ensure continued protection against risks.
