The Insurance Regulatory Authority (IRA) has placed Invesco Assurance Company Limited under statutory management, citing unmet financial obligations.
The regulator said the Policyholders Compensation Fund (PCF) has taken over the management and operations of Invesco Assurance Company Limited.
“IRA has with effect from August 14, 2024, placed Invesco Assurance Company Limited under Statutory Management as per Section 67C(2)(i) of the Insurance Act. The Authority has appointed the PCF as the Statutory Manager for Invesco Assurance Company Limited (under statutory management),” Commissioner of Insurance, Godfrey Kiptum said in a notice.
When a company is placed under statutory management it means that the regulator takes over its core functions, managerial and operational. Under statutory management, the management of the affected company is barred from running its operations.
IRA said Invesco is not authorised to enter into any new insurance contracts.
“The insurer’s existing policyholders are advised to immediately seek alternative covers from other licensed insurers to ensure that there is no unnecessary exposure. PCF will compensate the affected claimants as provided for under the Insurance Act, Cap 487 Laws of Kenya,” Mr Kiptum said.
The IRA’s decision extends a streak of struggles the insurer has faced for several years now, including two instances when it has been placed under liquidation, and others when it has been fined for some offences.
Last December, the insurer had to rush to the High Court after the IRA stopped it from issuing new covers, following petitions submitted before the IRA by two claimants.
The IRA’s liquidation order followed a dire situation where by the end of September 2023, Invesco topped the list of insurers with the highest number of unpaid claims. The insurer had 3.85 million outstanding liability claims, up from 3.69 claims that were outstanding as of the end of 2022.
The liability claims meant that even after insured customers approached the insurer to pay claims following losses emanating from an insured risk, Invesco had not settled.
By the end of March 2024, IRA data shows that Invesco’s outstanding claims were 3.74 million, down from 3.88 million at the start of January.
