The Insurance Regulatory Authority (IRA) has taken decisive measures against two insurance companies grappling with financial challenges.

In an official statement released on Friday, the IRA declared that Xplico Insurance Company Limited has been placed under statutory management by the Policyholders Compensation Fund (PCF), effective December 8, 2023. As a result of this action, Xplico Insurance Company Limited is prohibited from issuing any new insurance contracts. Existing policyholders are strongly advised to seek coverage from other licensed insurers to mitigate potential risks.

Additionally, the IRA disclosed that Invesco Assurance Company Limited has been placed into liquidation by the Official Receiver, following two insolvency petitions filed by claimants in Malindi and Nairobi courts. The cancellation of the insurer’s license accompanies the assumption of control over its affairs by the Official Receiver.

These regulatory interventions underscore the IRA’s commitment to safeguarding the interests of policyholders and maintaining the stability and integrity of the insurance sector. The actions taken against Xplico Insurance Company Limited and Invesco Assurance Company Limited aim to address financial difficulties and ensure the protection of policyholders in light of the challenges faced by these insurers.

Existing clients have been advised by IRA to seek alternative policy arrangements elsewhere. The PCF will in the meantime compensate claims from both insurers as per the Insurance Act, Cap 487 of Kenya.