The Policyholders Compensation Fund (PCF) has taken over management of three insurance firms that were placed under statutory management.
PCF says it has assumed full control of the management, business, and operations of the three insurers for the duration of the statutory management period.
At the same time, PCF says it has suspended payment of claim by the three; Trident Insurance Company Limited, KUSCCO Mutual Assurance Limited and Corporate Insurance Company Limited for a period of six months.
The agency said a policyholder shall not be liable to pay any claim not payable by the insurer due to the moratorium as provided under section 67C (11).
“In exercise of the powers conferred under Section 67C (10) as read together with Section 67C (11) of the Insurance Act, 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, effective 10th March 2026,” PCF said.
In a public noted dated March 24, PCF said it will in due course announce when policyholders will start receiving their claims.
“Pursuant to Section 179 (1) and Section 179 (2A) (a) of the Insurance Act, PCF will, at an appropriate time, issue a Public Notice on the commencement of compensation to eligible policyholders and claimants in accordance with the provisions of the Insurance Act,” the notice reads.
Last week, the Insurance Regulatory Authority directed Kenyans to find alternative insurers after the three underwriters were placed under statutory management.
Under the statutory management arrangement, the three insurers were barred from issuing any new insurance policies starting March 11 while policyholders were advised to immediately seek alternative insurance cover from other licensed insurers to avoid exposure in the event of claims.
“This regulatory action has been taken to safeguard the interests of policyholders, creditors and the general public, and to allow for an orderly assessment and stabilization of the companies’ financial and operational positions.”
The latest intervention adds to a growing list of troubled insurers in Kenya that have required regulatory rescue in recent years, highlighting the fragile position of smaller insurance firms.
Among those previously placed under statutory management are Blue Shield Insurance, which collapsed after struggling to meet claims obligations, Invesco Assurance, which was taken over by regulators due to financial distress.
Resolution Insurance, which was placed under statutory management in 2022 following prolonged liquidity challenges.
Xplico Insurance Company Limited was placed under statutory management in December 2023 because of solvency and operational issues. United Insurance Company Limited has also been under statutory management since 2018.
