Resolution Insurance placed under statutory management by Kenyan government
The government’s insurance regulator stated that the insurer, which sold a range of products including travel and medical plans, had repeatedly failed to meet its obligations or mitigate risks
Kenya’s Resolution Insurance has been placed under statutory management by the country’s Insurance Regulatory Authority (IRA), due to concerns about its inability to meet its obligations and mitigate inherent risks, which the regulator says has prompted intervention on several occasions.
The IRA announced that it has appointed the Policyholders’ Compensation Fund (PCF) as statutory manager for the company for a one-year period, commencing 5 April 2022. Following the transition, Resolution will no longer be authorised to conduct any new insurance business.
PCF is a state corporation set up by the Kenyan government to provide compensation to claimants on behalf of an insurer placed under statutory management. Claims payable by the PCF are capped at Ksh 250,000 (US$2,170).
The insurer reportedly struggled to settle claims or comply with industry requirements
In a statement, the IRA said that: “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.
The IRA added that the company had repeatedly failed to settle claims to the detriment of claimants, policyholders and other creditors, and that ultimately the firm was ‘also not able to comply with statutory requirements relating to capital adequacy, submission of returns and government structures’.
Resolution Insurance is a tier-two underwriter which sells a range of insurance products, including travel and medical plans, as well as other classes of general insurance, across east Africa.