IRA delists 9 insurance brokerage companies in kenya
Soko Directory Team
The Insurance Regulatory Authority (IRA) has delisted nine insurance brokerage firms for failure to comply with the Insurance Act barring them from handling any old or new business.
The nine include Arc Insurance, Berkley Insurance, Cherith Brooks Insurance, Faida Insurance, Family Insurance and Precious Insurance. Others to lose their licences from the action by the Insurance Regulatory Authority (IRA) are Safron Insurance, Secular Insurance and Starlit Insurance.
Reasons for which a broker can be deregistered include:
(i) having inadequate capital,
(ii) undergoing liquidation,
(iii) being part of an illegal merger or liquidation,
(iv) dormancy, and
(v) conducting business against public interest as determined by the finance minister.
IRA also deregistered eleven insurance investigators and nine insurance motor assessors in a move to curb fraud that results from collusion among these service providers and has resulted in losses for most insurers.
According to the IRA 2016 annual report, the insurance industry had 204 licensed insurance brokers, 146 insurance investigators and 121 motor assessors.
The insurance sector has been registering minimal profits in its core business of underwriting with the industry recording a loss ratio and combined ratio of 58.5% and 89.5%, respectively, as at Q1’2017.
Motor vehicle insurance reported one of the highest loss ratios in the industry at 53.0% and 76.0% for commercial and private motor segment, respectively.
