Insurance Regulatory Authority (IRA) has placed Xplico Insurance under statutory management, effective December 8, 2023.
The Policyholders Compensation Fund (PCF) has been appointed to oversee and manage the affairs of the insurer.
According to a statement released by IRA, the directive prohibits Xplico Insurance from issuing any new insurance contracts during the statutory management period.
Also Read: Insurance Regulatory Authority Delists 80 Insurance Brokerage Firms, Here Are their Names
“The insurer is prohibited from issuing any new insurance contracts from 8th December 2023.
“Its existing Policyholders are advised to immediately seek alternative covers from other licensed insurers to ensure that there is no unnecessary exposure,” IRA Siad in the statement.
Existing policyholders are strongly urged to explore alternative coverage options from licensed insurers promptly to avoid unnecessary exposure.
The Policyholders Compensation Fund will play a crucial role in compensating affected claimants in accordance with the provisions outlined in the Insurance Act, CAP 487 Laws of Kenya.
Invesco Assurance Company Limited Enters Liquidation
In a parallel move, the Insurance Regulatory Authority has initiated the liquidation process for Invesco Assurance Company Limited. An official receiver has been appointed to oversee the liquidation proceedings, resulting in the cancellation of the insurer’s license.
Similar to Xplico Insurance, Invesco Assurance Company Limited is now prohibited from issuing new insurance policies with immediate effect from December 8, 2023. Existing policyholders are strongly advised to promptly seek alternative coverage from licensed insurers to mitigate any potential risks.
As part of the liquidation process, the Policyholders Compensation Fund will step in to compensate affected claimants, aligning with the stipulations of the Insurance Act, Cap 487 Laws of Kenya.
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