The Insurance Regulatory Authority (IRA) has placed Invesco Assurance Company Limited under statutory management, meaning that the running of the company will now be under the regulator.
IRA has also appointed the Policyholders Compensation Fund (PCF) to oversee functions of the beleaguered insurer.
In December last year, the authority placed the same firm under liquidation, a process that involves winding up a business operations and selling assets to compensate shareholders and creditors.
“Invesco Assurance Company Limited (under statutory management) is not authorized to enter into any new insurance contracts from 14th August 2024,” IRA announced.
“The insurer’s existing Policyholders are advised to immediately seek alternative covers from other licensed insurers to ensure that there is no unnecessary exposure,” it added.
“The Policyholders Compensation Fund will compensate the affected claimants as provided for under the Insurance Act, Cap 487 Laws of Kenya.”
This comes at a time when insurance companies are facing financial losses amid a tough economic environment.
Likewise, in December 2023, Xplico Insurance was placed under statutory management.
