The Insurance Regulatory Authority (IRA) has deregistered nine Kenyan insurance brokerage firms after they failed to comply with the Insurance Act.
In a notice, IRA stated that the nine brokers, all with their head offices in Nairobi, were not allowed to “carry on, transact, do, or handle any new or old business.”
The nine include Arc Insurance, Berkley Insurance, Cherith Brooks Insurance, Faida Insurance, Family Insurance, Precious Insurance, Safron Insurance, Secular Insurance and Starlit Insurance.
“The brokers were deregistered for failure to comply with the law,” a source familiar with IRA’s enforcement action stated.
IRA also deregistered scores of other players in the sector in a move to curb fraud that has seen insurers bleed millions of shillings.
11 insurance investigators who include Brisk Insurance, Snarp Response Insurance, Mark Patrol, Timex Safety Solutions and Pelican Investigation Services also lost their licenses.
The regulator further deregistered nine insurance motor assessors including Auto Just Loss Assessors, Allied Assessors, Delta Motor Valuers and Assessors and Tech-Link Motor Consultants.
An insurance surveyor, Toplis and Harding International, and a claims settling agent, Stely Insurance, were also deregistered.
The Insurance Act lays out several instances where a broker can be deregistered including having inadequate capital, undergoing liquidation, being part of an illegal merger or acquisition, dormancy and conducting business against public interest as determined by the finance minister.
