Directline Assurance Not Closed, Says Regulatory Authority

By Aoma Keziah

The Insurance Regulatory Authority (IRA) has refuted claims of the closure of Directline Assurance Company Limited.

The Agency said in a statement that a report aired in one of the Media stations early this week was not factual.

The report suggested that the insurance company had been closed by alleged real shareholders, prompting a public response from the IRA.

In his statement, IRA Commissioner of Insurance and Chief Executive Officer Godfrey K. Kiptum clarified that the matter regarding Directline Assurance’s shareholding is currently before the courts and awaiting a determination.

He emphasized that there has been no legal closure or winding up of the company, as any such process must follow the guidelines set out in the Insurance Act, CAP 487 Laws of Kenya.

Kiptum assured policyholders that all insurance policies issued by Directline Assurance remain valid and in full effect.

The company remains liable for any claims arising from these policies, and policyholders are encouraged to continue with their operations as outlined in their insurance contracts.

As a state corporation established under the Insurance Act, CAP 487, IRA reaffirmed its mandate to regulate and supervise the insurance industry in Kenya, noting that its regulatory measures are aimed at ensuring stability in the insurance sector and maintaining market confidence.

The Authority reiterated its commitment to protecting the interests of policyholders and ensuring the continued stability of the insurance industry.