How Standard Assurance was brought to its knees

In what has become a similar script for collapsed insurers in Kenya, rising cases of fraud and mismanagement has been cited as a key driver behind the spate of collapse of insurance firms.

Access Insurance Company, Stallion Insurance Company Ltd, Lakestar Insurance Company Ltd, United Insurance Company and more recently Invesco Insurance Company Ltd have all been in trouble or collapsed to the disadvantage of many policy holders.

The government is leading reforms in the local insurance industry in an effort to stem the instability that has gripped the sector over the past decade.

This includes limiting ownership of a single individual shareholder to 25 per cent and increasing the minimum capital requirement from the Sh50 million to Sh150 million for life insurers, Sh100 million to Sh300 million for general insurance and Sh150 million to Sh450 million for composite insurance.