Two insurance firms operating in Kenya have been prohibited from issuing new insurance contracts with immediate effect.
The Insurance Regulatory Authority (IRA) has directed policyholders with covers offered by the two firms, Xplico Insurance Company Limited and Invesco Assurance Company Limited in Liquidation to seek alternative covers from licensed insurers.
IRA placed Xplico Insurance Company Limited under Statutory Management and appointed the Policyholders Compensation Fund (PCF) as the Statutory Manager for the insurer with immediate effect.
“Its existing Policyholders are advised to immediately seek alternative covers from other licensed insurers to ensure that there is no unnecessary exposure,” IRA said in a statement on Friday.
The authority also said it was in receipt of communication from the Official Receiver on his appointment as the Provisional Liquidator of Invesco Assurance Company Limited in Malindi Insolvency Cause No. 1 of 2018 – Dama Charo Nzai & 57 Others VS Invesco Assurance Company Limited, and Nairobi
Insolvency Petition No. E015 of 2019 Salesio Kinyua Njagi & 9 Others VS Invesco Assurance Company Limited.
“The insurer is prohibited from issuing any new insurance policies with effect from 8th December 2023,” said IRA.
The authority says PCF will also compensate the affected claimants as provided for under the Insurance Act, Cap 487 Laws of Kenya.