Three insurers Trident Insurance Company, KUSCO Mutual Assurance Ltd and Corporate Insurance Company have been placed under statutory management.

In a market update on Wednesday, the Insurance Regulatory Authority (IRA) appointed the Policyholders Compensation Fund (PCF) as the statutory manager of the three troubled firms.

"The authority [IRA] noted continued deterioration in the companies' financial positions and failure to meet mandatory solvency requirements. Despite several regulatory interventions and directives issued by the authority to safeguard policyholders' interests, the companies did not demonstrate sufficient capacity to restore compliance within the stipulated timelines," the IRA explained in a note to the public.

Further, the IRA directed the affected companies to desist from entering into any fresh insurance contracts starting 11th March 2026 as PCF undertakes to compensate the affected claimants from the firms.

"PCF will oversee the affairs of the company, including assessment of liabilities, verification of claims and orderly resolution of outstanding obligations in line with the law," the industry regulator noted. 

For a significant period of time, the three insures have been hit by an avalanche of customer complaints owing to financial distress. According to media reports, the three continue to grapple with high volumes of unpaid claims, failure to meet statutory financial obligations, and breaches of industry regulations.

In 2024, the industry regulator slapped Trident Insurance Company Ltd with KES48.86 million in fines attributable to violation of industry regulations. 

For KUSCO Mutual Assurance Ltd, the insurer has been under IRA's radar over a range of accusations including bribery, misuse of funds by its executives besides incidences of cooking the books.

Corporate Insurance Company has equally been in breach of the insurance law with media reports citing incidences of flouting financial reporting standards.

[email protected]