IRA kenya: Xplico, Amaco record highest customer discontent

Unclaimed Financial Assets Authority (UFAA) CEO Kellen E. Kariuki (R) and Insurance Regulatory Authority (IRA) CEO Sammy Makove (L) exchange MOU documents. [Photo: Courtesy]

Insurance Regulatory Authority Kenya has reported that Explico and Amaco insurance companies have recorded the highest number of customer dissatisfaction in the entire industry.

The companies which majorly insure public service vehicles had 96.49 percent of complaints from their clients of delayed settlement in dealing with claims, rejected claims, incorrect claims and unsatisfactory claim settlements.

The data shows that customer grievances against the insurers went up from 1,082 in 2016 to 2,126 in 2017.

Of the 96.49 percent complaints, the authority says 56 percent of the entire industry complaints which represents 1,190 cases were settled in which 202 cases were resolved by Xplico and 148 cases settled by Africa Merchant Assurance Company.

The Authority reports further that 20 percent customer dissatisfaction complaints were on life insurance policies while the rest 75 percent were on motor insurance policies.

IRA said, “In 2017, the authority continued to monitor the implementation of Treating Customers Fairly (TCF) framework as part of the its Consumer Protection Strategy. Thus the authority is continuously engaging industry stakeholders’ in order to address the ever pressing concern of delayed claims settlement and prompt resolution of complaints.’’ This will be provided through policies that guides both the insurer and the assurer.

Xplico company has been facing legal challenges arising from management tussles a matter that has interested the regulator to conduct research on its operations.

IRA data records that Xplico’s market share was at 0.65 percent, accumulated assets were at Sh2.28 billion as at December 31, 2017 while its gross premium stood at Sh804 million.

The regulator further reports that there are 52 permitted insurance companies in Kenya with 27 companies recording 12 customer complaints.