Policyholders of three troubled insurers will face a six-month freeze on payouts after the Policyholders Compensation Fund (PCF) declared a moratorium following its appointment as statutory manager.
- •The affected firms, Corporate Insurance Company Limited, KUSCCO Mutual Assurance Limited and Trident Insurance Company Limited, were placed under statutory management on March 10, 2026 by the Insurance Regulatory Authority (IRA) after failing to meet solvency requirements.
- •PCF said it has assumed full control of the insurers’ operations for a six-month period, during which payments to policyholders, claimants and other creditors will be suspended in line with provisions of the Insurance Act.
- •The move is likely to heighten uncertainty for policyholders, many of whom will be unable to access claim payments in the near term, but regulators argue the temporary freeze is necessary to stabilise the firms and protect the broader insurance market.
“The Statutory Manager hereby declares a moratorium on the payment of the insurer to its policyholders and claimants and all other creditors for a period of six (6) months,” the fund said in separate notices for the three firms.
The intervention follows what the regulator described as a sustained deterioration in the financial position of the insurers, despite prior supervisory actions aimed at restoring compliance. The IRA said the firms failed to demonstrate sufficient capacity to meet mandatory capital and solvency thresholds within set timelines.
By placing the companies under statutory management, the regulator aims to halt further accumulation of liabilities while safeguarding the interests of policyholders and creditors.
PCF, a state corporation under the National Treasury established under Section 179 of the Insurance Act, will oversee the insurers’ affairs during the moratorium period. This includes assessing liabilities, verifying claims and determining an appropriate resolution framework.
The fund added that compensation to eligible claimants will only commence after a formal public notice is issued in accordance with the law.
