The Lower Eastern Times Opening The Third Eye
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The Policyholders Compensation Fund (PCF) has taken over the operations of three insurance companies that were recently placed under statutory management.
In a statement, PCF confirmed it now has full authority over the firms’ management, business activities, and overall operations throughout the statutory management period.
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The fund also announced a six-month suspension on the settlement of claims by the affected insurers—Trident Insurance Company Limited, KUSCCO Mutual Assurance Limited, and Corporate Insurance Company Limited.
PCF clarified that policyholders will not be required to meet any claims obligations that insurers are unable to pay during the moratorium period, as outlined in the Insurance Act.
Citing its legal mandate, the statutory manager declared a six-month freeze on payments to policyholders, claimants, and all other creditors, effective March 10, 2026.
In a public notice dated March 24, PCF indicated that it will later communicate when compensation for eligible claimants will begin, in line with the law.
Earlier, the Insurance Regulatory Authority had advised Kenyans to seek alternative cover after the three insurers were placed under statutory management. The companies were also barred from issuing new policies from March 11, with customers urged to move to other licensed insurers to avoid risk.
The regulator said the move was aimed at protecting policyholders, creditors, and the public, while allowing time to stabilise the firms’ financial and operational status.
This development adds to a growing number of struggling insurance companies in Kenya that have required regulatory intervention in recent years, underscoring challenges facing smaller players in the sector.
Other insurers previously placed under statutory management include Blue Shield Insurance, Invesco Assurance, Resolution Insurance, Xplico Insurance Company Limited, and United Insurance Company Limited, many of which faced financial or operational difficulties.
