The Insurance Regulatory Authority (IRA) has cautioned Kenyans against buying life insurance from a foreign company illegally operating in Kenya.
In a notice carried in local dailies, the authority indicated that the Seychelles-based company was selling crucial products without obtaining the necessary licenses required to operate.
The authority, as a result, explained that it was illegal for Kenyans to buy life insurance from an organisation not regulated by the state.
"It has come to the attention of the Authority that a foreign insurance company (name withheld) has been selling life insurance products in the Kenyan market without the required authorisation," read the notice in part.
"This is to notify the public that in line with Section 20 of the Insurance Act Cap 487 it is illegal to buy insurance products from an insurer not licensed under the Act."
The authority, as a result, asked Kenyans to report individuals working with insurance companies not registered to operating Kenya.
IRA further asked affected individuals who bought insurance policies from unregistered companies to report to the Authority for necessary assistance.
How to Authenticate Insurance Company
The IRA publishes the names of insurance companies authorised to operate in Kenya and in 2024, only 23 companies were approved whose names are available on the regulator's website.
The companies have been approved to offer both long-term and general insurance. The long-term insurance products include Life Assurance, pensions, group life, and investment among others,
General insurance on the other hand includes sectors such as aviation, engineering, fire domestic and industrial, liability, marine, motor vehicle private, theft, medical, work compensation, and motor commercial.
The IRA, therefore, advises that all insurance customers must ensure the agents they are dealing with are registered and must show certificates as well as the premiums offered should not be unreasonably low.
Customers should also make sure they get the policy document and receipt of premium payment.
