Insurance Regulator to Review Law

Industry Regulator Insurance Regulatory Authority (IRA) is planning to review the Insurance Act to put in attempt to put the sector in order.
Sammy Makove, chief executive officer IRA says this review is meant to promote efficiency of the insurance industry, facilitate and support access for insurance services and offer meaningful policy holder compensation and protection. A task force has already been appointed to review the current public service vehicle (PSV) underwriting policies.
This long awaited review of the industry’s regulatory environment is happening when the business is facing challenges of poor corporate governance, weak financial strength and negative perception from the public.
"This task force is almost completing its assignment and is expected to present its recommendations to the finance minister in a month," said Makove.
PSV underwriting has in the past been avoided by insurance firms, due to the high incidences of fraudulent claims. "Many Kenyans have had bad encounters with insurance providers and as a regulator, we are committed to changing this perception," said Makove.
Invesco is the latest PSV underwriting firm to go under in recent months, while another PSV underwriter is currently experiencing liquidity problems. To improve the quality of services offered by providers, IRA has put in place new requirements for training of the insurance service providers before licensing. The regulator will be publishing the names of all licensed companies soon.