The Insurance Regulatory Authority (IRA) has taken drastic action against two insurance companies that were facing financial difficulties.
In a statement on Friday, IRA said Xplico Insurance Company Limited has been placed under statutory management by the Policyholders Compensation Fund (PCF), effective December 8, 2023.
The authority said the insurer is no longer allowed to issue any new insurance contracts and advised existing policyholders to find other licensed insurers to avoid any risks.
IRA also announced that Invesco Assurance Company Limited has also been put into liquidation by the Official Receiver following two insolvency petitions filed by some of its claimants in Malindi and Nairobi courts.
The insurer’s licence has been cancelled, and the Official Receiver has taken over its affairs.
IRA advised existing policyholders to also seek alternative coverage from other licensed insurers.
The PCF will compensate the affected claimants of both insurers as per the Insurance Act, CAP 487 of Kenya.