Resolution Insurance Placed Under Statutory Management For 12 Months

[beth]

Underwriting firm Resolution Insurance has been placed under statutory management owing to operational and financial difficulties.

The Policyholders Compensation Fund (PCF) has been appointed Resolution’s statutory manager for a period of 12 months effective Tuesday.

According to the Commissioner General of Insurance Godfrey Kiptum, Resolution has been facing a number of challenges particularly relating to its ability to meet its obligations and mitigate its inherent risks.

This led to intervention from Kiptum, which was guided by the Insurance Act on a number of occasions, but the insurer still failed to better its position hence it was placed under a receivership manager.

“In particular, the company is not able to settle claims to the detriment of claimants, policyholders and other creditors. The insurer is also not able to comply with statutory requirements relating to capital adequacy, submission of returns and governance structures,” Kiptum said in a statement.

“The authority has had numerous engagements with the management and Board of the insurer to seek solutions to salvage the company. The authority has also considered the various initiatives undertaken by the shareholders to inject capital into the company. Unfortunately, all those measures have not been successful.”

Following the move, Resolution Insurance will not be able to partake in any insurance business, and all existing policies at the firm will cease to be active effective Tuesday.

Source: Citizen Digital

 

[Lady Whistledown]

Kampuni ya Bima ya Resolution imewekwa chini ya usimamizi wa kisheria kutokana na changamoto za uendeshaji na kifedha.

Hazina ya Fidia ya Wamiliki Sera (PCF) imeteuliwa kuwa meneja wa kisheria wa kampuni hiyo kwa muda wa miezi 12 kuanzia Jumanne ya tarehe 5 mwezi huu.

Kulingana na Kamishna Mkuu wa Bima Godfrey Kiptum, kampuni hiyo imekuwa ikikabiliwa na changamoto kadhaa hasa zinazohusiana na uwezo wake wa kutimiza majukumu yake na kupunguza hatari zake asili.

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Resolution Insurance Company Limited has been placed under Statutory Management by the Commissioner of Insurance for a period of 12 months, starting today.

During this period, the Commissioner of Insurance Limited has appointed the Policyholders Compensation Fund (PCF) as the Statutory Manager.


In a press release dated April 5, 2022, the Insurance Regulatory Authority said the company has been facing a number of challenges particularly relating to its ability to meet its obligations and mitigate its inherent risks.

This, therefore, had invited the Commissioner to intervene on several occassions.

"Despite the various intervention measures taken as provided for by the Insurance Act, Resolution Insurance Company Limited has continued to slide into operational and financial difficulties.

"In particular, the company is not able to settle claims to the detriment of claimants, policyholders and other creditors. The insurer is also not able to comply with statutory requirements relating to capital adequacy, submission of returns and governance structures," reads an excerpt of the statement.

Additionally, the authority said it had had numerous engagements with the Management and Board of the insurer to seek solutions to salvage the company.


However, all the measures had not been successful.

"Resolution Insurance Company Limited is from now henceforth not authorized to transact any new insurance business."

Source: Resolution Insurance placed under Statutory Management

 

[Geza Ulole]

another loss making kenyan company

Resolution Insurance placed under Statutory Management

Resolution Insurance Company Limited has been placed under Statutory Management by the Commissioner of Insurance for a period of 12 months.

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