Customer dissatisfaction highest at Xplico, Amaco

Xplico Insurance Company and Amaco, which mostly insure public service vehicles, recorded the highest complaints in 2017, a year which saw grievances escalate by 96.49 per cent for the entire industry.

Latest data from the Insurance Regulatory Authority (IRA) shows the complaints against insurers rose to 2,126 from 1,082 recorded in 2016.

The authority said 56 per cent (1,190 cases) were resolved during the period under review. Xplico accounted for 202 cases while Africa Merchant Assurance Company (Amaco) had 148.

The complaints included delayed settlement of claims, declined claims, erroneous deductions and unsatisfactory claims settlement offers.

Out of these complaints, 75 per cent were on motor insurance policies, while 20 per cent were on life insurance policies. The IRA admitted that consumer protection remains a challenging task saying it is seeking to address both through the law and engagement with industry players.

“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,” said IRA.

Xplico has been in the news for all the wrong reasons.

The company has been facing management wrangles that have largely been fought in court, putting a spotlight on the industry regulator.

The regulator’s data shows that as at December 31, 2017, Xplico’s total assets stood at Sh2.28 billion, with the gross direct premiums for the year amounting to Sh804 million and a market share of 0.64 per cent.

There are 52 licensed insurance companies in Kenya, and out of these 27 recorded more than 12 complaints with the remaining registering less than that. Other top companies which had highest number of complaints included, Invesco (137), Madison (137), Capex (135) and Pioneer (124).