IRA takes over Resolution Insurance after failure to meet financial obligationsTuesday April 05 2022
Insurance Regulatory Authority (IRA) on Tuesday evening announced that they have placed Resolution Insurance Company Ltd under statutory management.
The insurance regulator said that the action was taken because the company has been facing a number of challenges, particularly relating to its ability to meet its obligations and mitigate its inherent risks.
"Despite the various intervention measures taken as provided for by the Insurance Act, Resolution Insurance Company Limited has continued to slide into operational and financial difficulties," IRA said in a statement.
"In particular, the company is not able to settle claims to the detriment of claimants, policyholders and other creditors. The insurer is also not able to comply with statutory requirements relating to capital adequacy, submission of returns and governance structures."
When a company is placed under statutory management it means that the regulator takes over its core functions, managerial and operational.
The management of the company is locked out of running the company for the period under which it is under statutory management.