The Insurance Regulatory Authority (IRA) has placed Invesco Assurance Company under statutory management with immediate effect due to financial distress.
The insurer is barred from entering into new contracts and PCF is appointed as the Statutory Manager.
Policyholders are advised to seek alternative coverage and PCF will compensate affected claimants as per the Insurance Act.
“The insurer’s existing Policyholders are advised to immediately seek alternative covers from other licensed insurers to ensure that there is no unnecessary exposure,” said IRA Commissioner of Insurance Godfrey Kiptum. in a statement.
Invesco Assurance Company is grappling with a backlog of unpaid claims and mounting debts. The insurer has defaulted on approximately $400,000 (KSh53.3 million) in claims, primarily related to road accidents.
With a backlog of over 3.6 million claims and a paltry 1.2% claims settlement rate in the last quarter of 2022, the company’s financial health has deteriorated significantly since its last compliant financial filing in 2018.
Invesco Assurance Co. Ltd. was incorporated in 1997 under Cap 486 Companies’ Act Laws of Kenya.
It was placed under statutory management on 28th February 2008 but emerged out of statutory management on 18th January 2010 after the Matatu Owners Association proposed to revive the company.
