Mombasa:The Insurance Regulatory Authority (IRA) has issued a warning to insurance brokers about engaging in fraudulent activities related to the issuance of performance bonds to foreign clients. The IRA is urging industry players to maintain integrity and rebuild public confidence in the insurance sector.
According to Kenya News Agency, IRA CEO Godfrey Kiptum highlighted concerns about unscrupulous insurance providers who are misusing licenses by issuing performance bonds in foreign countries. He noted that some individuals involved have been prosecuted, and their licenses have been revoked.
Kiptum made these remarks during the 20th Annual Regional Conference of the Association of Insurance Brokers of Kenya (AIBK) in Mombasa. He pledged to release a comprehensive list of prosecuted individuals linked to the fraudulent activities.
The CEO also encouraged insurance brokers to embrace technology to widen their market reach and increase insurance penetration. He emphasized that the law allows the digital distribution of insurance, provided brokers are licensed by the authority and hold valid practicing certificates.
AIBK Chairperson John Lagat echoed the importance of rebuilding public confidence in the insurance sector. He mentioned that AIBK would work with the IRA to educate the public on the benefits of using insurance brokers and companies, while ensuring transparency in policy exclusions.
Lagat pointed out that a major challenge in the industry is the lack of adequate explanation of policy exclusions at the point of sale, leading to misunderstandings when claims are filed. He praised the government’s directive to insure all marine cargo destined for Kenya locally, which helps retain premiums within the country.
The conference themed ‘Perfect Vision Building Trust, Inspiring Courage and Defining the Next Chapter’ provided a platform for various stakeholders to reflect on the state of the insurance industry and explore future opportunities in Kenya and the region.
