Invesco Assurance Company, which provides insurance policies for public service vehicles, has been forced into liquidation due to its failure to pay out claims amounting to millions of shillings.
In the last quarter of 2022, the insurer faced a cash crisis that resulted in only 48,207 out of 3,692,353 claims being paid, leading to a payment ratio of 1.2%, the lowest among all insurers in the country. As a result, the industry regulator has taken an interest in the situation and has ordered the insurer to cease entering into new insurance contracts immediately.
Invesco Assurance Company has been placed under liquidation through a decree of the court dated 6th February 2023 issued in the High Court at Nairobi in Insolvency Petition No. E155 of 2019.
Godfrey Kiptum – Insurance Regulatory Authority (IRA) Commissioner of Insurance and Chief Executive
Since 2019, the company has been facing difficulties due to its failure to submit financial statements, leading to a conflict with IRA.
In accordance with a court ruling, Invesco Assurance Company is prohibited from issuing new insurance policies and is not authorized to enter into any new insurance contracts, as stated by Kiptum.
Invesco was fined for various violations, including late payment of claims and failure to submit audited accounts in Q3 2022. It was fined the highest amount of KES 24.94 million for missing the deadline for submitting audited books, and it remains on IRA’s blacklist.
The Policyholders Compensation Fund (PCF), which safeguards policyholders of insolvent insurers by compensating them for unpaid claims, with a maximum compensation limit of KES 250,000 for any one claim lodged by a claimant, will compensate affected claimants.
IRA has declined the company’s financial performance reports since 2019 due to “data inconsistency and non-compliance with submission requirements.”
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