Policyholders of Resolution Insurance have begun filing for compensation from the Policyholders Compensation Fund (PCF), making them the first clients of a collapsed insurer to get prompt payment following a change in the law.
But there appears to be a gap in information from PCF to collapsed insurers’ clients, given the low turnout of policyholders who have filed for compensation.
Since 2005, insurance companies and policyholders have collected Sh15 billion under PCF to be utilised whenever an insurance company collapses.
Only 90 Concord policyholders filed claims since last year out of the expected 1,500.
For Resolution Insurance, only 50 policyholders have filed for compensation. The firm had collected Sh4.1 billion in premiums, out of which 90 percent (Sh3.5 billion) were medical customers, who will suffer paying out of pocket while awaiting compensation.
PCF needs to improve its communication channels, including directly contacting the affected policyholders. It should also automate the claims process for accessibility and convenience.