Who is responsible for supervising and regulating the insurance industry in Kenya?

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The Insurance Regulatory Authority is a statutory government agency established under the Insurance Act (Amendment) 2006, CAP 487 of the Laws of Kenya to regulate, supervise and develop the insurance industry. It is governed by a Board of Directors which is vested with the fiduciary responsibility overseeing operations of the Authority and ensuring that they are consistent with provisions of the Insurance Act.

The Authority is a precursor to the then Office of the Commissioner of Insurance that came into existence with the enactment of the Insurance Act, CAP 487 in 1986. Prior to this, insurance regulation was based on the UK legislation under the Companies Act 1960.

In executing our mandate, we adhere to the core principles of objectivity, accountability and transparency in promoting not only compliance with the Insurance Act and other legal requirements by insurance/reinsurance companies and intermediaries but also sound business practices. We therefore practice regulation and supervision that enables industry players to be innovative and entrepreneural. Bearing in mind industry differences in terms of size, extent and complexity, necessitating changes in operating and investment decisions helps cut down on compliance costs. Since in the long run, this has impacts on productivity and growth of the insurance sector, the Authority deploys significant resources in monitoring market behaviors, compliance and solvency issues.

In line with the Insurance Act, the functions of IRA are to:

The Authority works collectively and individually with Industry players in achieving the following fundamental insurance regulatory objectives:

Ensure compliance by insurance/reinsurance companies and intermediaries with legal requirements and sound business practices;
Promote voluntary compliance;
Set clear objectives and standards of intervention for insurance/reinsurance companies and intermediaries or type of intervention;
Protect consumers and promote high degree of security for policyholders;
Promote efficient, fair, safe and stable markets;
Maintain the confidence of consumers in the market;
Ensure insurance/reinsurance companies and intermediaries remain operationally viable and solvent; and
Establish a transparent basis for timely, appropriate and consistent supervisory intervention, including enforcement.

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Insurance Regulatory Authority of Kenya

Agency overviewFormedPreceding agencyJurisdictionHeadquartersMottoAgency executivesParent departmentWebsite

IRA

2006

Department of Insurance, Ministry of the National Treasury & Planning.

Kenya

Zep-Re Place, Longonot Road, Upper Hill, Nairobi, Kenya.

Bima Bora Kwa Taifa

Mohammed Amin Sheikh, Chairman of the Board of Directors.
Godfrey K. Kiptum (MBS), Commissioner of Insurance & Chief Executive Officer.

Ministry of the National Treasury and Planning

www.ira.go.ke

The Insurance Regulatory Authority of Kenya (IRA) is the sole authority charged with regulation and supervision of the insurance industry within the Republic of Kenya. It ensures compliance by insurance/reinsurance companies, protects consumers and promotes a high degree of policy security for policyholders.

History[edit]

Background[edit]

The regulation of the insurance industry in Kenya was initially based on the UK Companies Act 1960. The Government of Kenya enacted the Insurance Act Kenya CAP 487 in 1985[1] with the aim of localizing regulation of the insurance business. The newly-enacted legislation established the Department of Insurance within the Ministry of the National Treasury and Planning, headed by a Commissioner of Insurance, to supervise the insurance sector.

Creation of IRA[edit]

The Insurance Act was amended in 2006 in an attempt to promote further efficient regulation of the insurance sector. The Department of Insurance was separated from its parent ministry and established as a body corporate known as the Insurance Regulatory Authority.

With this amendment, not only did the department gain greater independence from bureaucratic hindrances, which improved its efficiency as intended, but the holder of the Commissioner's office gained additional responsibility in the secondary role of serving as the Chief Executive Officer of the newly-established Authority.

Functions[edit]

IRA is responsible for the maintenance of the stability of the insurance sector. Its main objectives and functions are found in the Insurance Act.[2]

References[edit]

^ "Kenya Law". Retrieved 8 October 2022.{{cite web}}: CS1 maint: url-status (link)
^ "Act Title: INSURANCE". Government of Kenya. 8 January 1985. Retrieved 9 October 2022.

External links[edit]

Official website

Who regulates the insurance industry in Kenya?

The IRA is the main insurance regulatory body in Kenya. The IRA: Ensures the effective administration, supervision, regulation and control of insurance and reinsurance business in Kenya. Formulates and enforces standards for the conduct of insurance and reinsurance business in Kenya.

Who is responsible for regulating the insurance industry?

Insurance is regulated by the states. This system of regulation stems from the McCarran-Ferguson Act of 1945, which describes state regulation and taxation of the industry as being in “the public interest” and clearly gives it preeminence over federal law. Each state has its own set of statutes and rules.

What is the role of government in regulating the insurance industry?

Insurance regulators play a crucial role here, ensuring that the processes and structures that are put in place protect policyholders and foster competition among the private insurance companies, while maintaining the integrity and stability of the financial system.

Who are the insurance regulatory authorities and what is their role and functions?

IRDA or Insurance Regulatory and Development Authority of India is the apex body that supervises and regulates the insurance sector in India. The primary purpose of IRDA is to safeguard the interest of the policyholders and ensure the growth of insurance in the country.

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