The Insurance Regulatory Authority (IRA) has placed Invesco Assurance under statutory management for the second time in the insurer’s 27-year history.
- Policyholders with Invesco Assurance have been advised to seek services from alternative insurance providers to avoid unnecessary exposure.
- INVESCO Assurance Co, was incorporated in 1997, was first placed under statutory management in February 2008.
- The company emerged out of statutory management on 18th January 2010 after the Matatu Owners Association made a proposal to revive it.
“Insurance Regulatory Authority (IRA) has with effect from 14th August 2024 placed Invesco Assurance Company Limited under Statutory Management as per Section 67C(2)(i) of the Insurance Act. The Policyholders Compensation Fund will compensate the affected claimants as provided for under the Insurance Act, Cap 487 Laws of Kenya,” said IRA in a statement.
In December last year, the IRA also placed Xplico Insurance under statutory management and appointed the Policyholders Compensation Fund (PCF) as the Statutory Manager. Troubles for the insurer 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.
Industry Stats
The Insurance Industry Quarterly Claims Statistics for the Period January – March 2024 shows an increase in the amount paid to general liability claims in the first quarter of 2024 from Ksh37.55 billion in Q4 2023 to Ksh37.61 billion. This is despite a drop in total actionable claims in Q1 2024 for general liability which the regulator say were 159, 273 compared to Q4 2023 claims put at 163,317. Total number of claims actionable is the summation of the number of claims paid, claims declined, claims closed as no claims, and claims outstanding at the end of the quarter.
IRA says 3,663,926 claims amounting to KES 61.69 billion were reported for general non-liability claims, an increase in number and amount from 3,167,116 claims worth KES 57.74 billion reported in Q4 2023. Long-term actionable claims in Q1 2024 were 154,153 claims amounting to KES 30.59 billion an increase in number but a decrease in amount from 147,053 claims amounting to KES 30.70 billion reported in Q4 2023.
