IRA reveals Kenyans have lost over Sh43billion on non-remitted payments to insurers by agents

IRA reveals Kenyans have lost over Sh43billion on unremitted payments to insurers by agents

The Insurance Regulatory Authority has revealed that Kenyans spent Sh43 billion in premiums of non-existent insurance covers after agents fail to remit the payments to insurers which exposes customers to loses.

In a report published by the Business Daily, IRA disclosed in court document s that insurance brokers collect billions of shillings from customers but fail to remit the money to insurance companies as required.

As a result, the risks covered which are in excess of Sh500 billion are not recognized because the insured can not be compensated before the premium is remitted to the insurer according to the insurance guidelines.

This was opened up in a court case where the agents are fighting a law that bars them from receiving customers’ payments on behalf of insurers.