•The Policyholders Compensation Fund will compensate the affected claimants as provided for under the Insurance Act.
•Invesco has been under the regulator’s radar in recent years.
Image: FILE
The Insurance Regulatory Authority (IRA) has placed Invesco Assurance Company Limited under statutory management effective August 14, over failed financial obligations.
Policyholders Compensation Fund (PCP) has subsequently been appointed as the statutory manager, with Invesco barred from entering into any new insurance contracts.
“The insurer’s existing policyholders are advised to immediately seek alternative covers from other licensed insurers to ensure that there is no unnecessary exposure,” Commissioner of Insurance and IRA chief executive, Godfrey Kiptum, said in a public notice.
PCP will compensate the affected claimants as provided for under the Insurance Act.
Invesco has been under the regulator’s radar and was at some point placed under liquidation.
The company has also previously been fined for breaching operating terms. It rushed to the High Court in December last year, after IRA stopped it from issuing new policies.
This was after the insurer recoded a high number of unpaid claims in the industry, which had accumulated, to over 3.9 million (outstanding liability claims). This however came down to 3.74 million as of March 2024.
Invesco’s troubles come barely nine months since Xplico Insurance suffered a similar fate in a turbulent insurance industry where a number of firms have been on the spot for failing to pay claims and meeting required industry rules.
In 2022, Resolution Insurance went down with Sh4.1 billion in Gross Written Premiums.
In June this year, the industry was treated to drama after Royal Credit Limited, which owns Directline Assurance, announced the closure of the firm, which accounts for the biggest share of policies in the matatu industry. IRA however denounced the move.
Last month, High Court Judge Alfred Mabeya on the other hand hit the last nail on BlueShield Insurance’s coffin, upholding IRA’s decision that the insurer cannot get back to its footing.
This signalled an end for the insurance firm that was incorporated in 1982.