Resolution Insurance to remain under caretaker management

Chief Executive Officer of the Insurance Regulatory Authority Godfrey Kiptum. FILE PHOTO | DENNIS ONSONGO | NMG

Resolution Insurance will remain under statutory management for at least three more months after the regulator applied for the extension which will see the underwriter’s policyholders and creditors wait longer for their money.

The Policyholders Compensation Fund (PCF), which on April 5 last year took over the firm as the statutory manager, says its duty has been extended for three months from October 5 to January 2024.

The extension of the term follows the application by the Insurance Regulatory Authority (IRA) commissioner of insurance Godfrey Kiptum in line with the High Court orders issued last week.

The extension of statutory management status also means a continuation of a moratorium on policyholders and creditors who are owed money by the cash-strapped insurer that was incorporated in 2002 as Resolution Health before renaming it to Resolution Insurance in 2013.

“In exercise of powers conferred by Section 67C (10) of the Insurance Act, PCF hereby extends the moratorium on payments by the said insurer to its policyholders and all other creditors for a period of three months until 4 January 2024,” said PCF in a notice.

The insurer has struggled to pull out of the woes that saw it go into statutory management with over Sh6.5 billion in client cash, insurance claims and creditor funds early last year.

Hopes of reviving the insurer have been fading, with the statutory manager in June saying that at least Sh3.6 billion was required to bring the firm back to solvency.

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