Resolution Insurance Company Limited has been placed under Statutory Management by the Commissioner of Insurance for a period of 12 months, starting today.
During this period, the Commissioner of Insurance Limited has appointed the Policyholders Compensation Fund (PCF) as the Statutory Manager.
In a press release dated April 5, 2022, the Insurance Regulatory Authority said the company has been facing a number of challenges particularly relating to its ability to meet its obligations and mitigate its inherent risks.
This, therefore, had invited the Commissioner to intervene on several occassions.
"Despite the various intervention measures taken as provided for by the Insurance Act, Resolution Insurance Company Limited has continued to slide into operational and financial difficulties.
"In particular, the company is not able to settle claims to the detriment of claimants, policyholders and other creditors. The insurer is also not able to comply with statutory requirements relating to capital adequacy, submission of returns and governance structures," reads an excerpt of the statement.
Additionally, the authority said it had had numerous engagements with the Management and Board of the insurer to seek solutions to salvage the company.
However, all the measures had not been successful.
"Resolution Insurance Company Limited is from now henceforth not authorized to transact any new insurance business."