The Insurance Regulatory Authority. (IRA) has placed Xplico Insurance under statutory management and appointed the Policyholders Compensation Fund (PCF) as the Statutory Manager for Xplico Insurance Company Limited.
- This means the statutory managers will take control and management of Xplico’s business and assets and may operate the underwriter until IRA permits it to resume business on its own, subject to any terms and conditions IRA may impose
- Xplico is prohibited by IRA from issuing any new insurance contracts from 8th December 2023.
- Its existing Policyholders are advised to immediately seek alternative covers from other licensed insurers to ensure that there is no unnecessary exposure.
Troubles for Xplico begun when a liquidation petition was filed by a creditor, Doris Mwaka Mwakwekwe, on March 17th 2022. This liquidation petition was heard before the High Court sitting at Malindi on 9th June 2022.
Xplico Insurance has been a subject of classical boardroom battles, all happening under the regulator’s watchful eye for close to a decade.
- The underwriter has seen its market share in the public service vehicles(PSV) business eroded as close competitors gradually edge it out.
- A key beneficiary of the Xplico has been Directline which has seen its market share in the PSV cover business, a loss-making venture for many underwriters
- The underwriter’s website, describes Xplico Insurance as offering insurance solutions to individuals and businesses, including the SME sector and the larger corporate market in Kenya and the wider East African region.
Its products include covers in areas of micro-health, sports, travel, aviation, marine, trade & credit and structured finance.
Invesco’s Provisional Liquidation
IRA has also appointed a Provisional Liquidator of Invesco Assurance Company Limited.
- The Official Receiver has taken over the affairs of Invesco Assurance Company Lid for the purposes of liquidation and the insurer’s licence is cancelled therewith.
- The insurer is prohibited from issuing any new insurance policies with effect from 8th December 2023.
Its existing Policyholders are advised to seek alternative covers from other licensed insurers to ensure that there is no unnecessary exposure. The Policyholders Compensation Fund will compensate the affected claimants as provided for under the Insurance Act, Cap 487 Laws of Kenya.
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