Over 40 insurance companies have been granted licences by their regulator Insurance Regulatory Authority (IRA). The insurers have been operating without the permits after a quorum hitch derailed the process due to lack of enough members to give a nod to the companies.
Insurance companies are supposed to renew their licences annually, but lack of enough board members to quantify a quorum forced them to start operating using letters from IRA. This forced National Treasury CS Henry Rotich to issue a gazette notice on January 30 this year to fill the four vacant slots. Those appointed were Ms Alice Njoroge, a representative of the Insurance Institute of Kenya, Ms Joyce Muchena, Mr Paul Cheboi and Mr Douglas Kilanya, setting the stage for competition of the licensing.
According to a press release from IRA, the process was completed by February and all firms that applied in time were licensed. The insurance act requires that Insurance companies renew their licences annually as a measure to enhance surveillance on the sector. They must file applications by end of September for licences to be processed by December 31 through an electronic platform.
The IRA board comprises of the Commissioner of Insurance Mr Sammy Makove, who is also IRA CEO, the National Treasury Principal Secretary Dr Kamau Thugge, Retirement Benefits Authority Acting boss Mr Paul Muthaura and the Central Bank of Kenya Governor. A nominee from the Insurance Institute is also included to represent professionals in the industry.
