12.7 C
Saturday, September 30, 2023
HomeWorld NewsInsurers keep suppliers waiting despite regulatory crackdown

Insurers keep suppliers waiting despite regulatory crackdown


Related stories

Macro Briefing: 29 August 2023

* US and China agree to take steps...

Global Markets Rally, Posting First Weekly Gain In A Month

After three straight weekly declines, the Global Market...

Macro Briefing: 28 August 2023

* Inflation “remains too high,” says Fed Chairman...

In search of a new economic playbook

Chinese corporate earnings reports this week are forecast...

FirstFT: Western companies sound alarm over China’s sluggish recovery

Receive free Global Economy updatesWe’ll send you a...


Insurers keep suppliers waiting despite regulatory crackdown


Insurance companies have continued to delay payments to service providers despite previous sanctions by the Competition Authority of Kenya (CAK) which forced the underwriters to clear outstanding pay.

Data from the CAK 2021/22 annual report shows the infringement by the insurers which is categorised under abuse of power cases shot up by 41 percent.

This represented 72 percent of all abuse of power cases recorded by the competition watchdog in the period or a respective 89 of 124 cases.

Among the notable cases handled by the regulator involved a complaint on alleged abuse of buyer power by Britam General Insurance Limited for delayed payments for services rendered by Fine Line Assessors.

Following investigations by CAK, Britam opted to settle the outstanding Sh1.47 million with the competition’s watchdog closing investigations at the payment of the final instalment of the arrears.

Fine Line raised a similar complaint against APA Insurance after going unpaid despite rendering services.

APA opted to pay the outstanding Sh423,298 upon the regulator’s intervention.

Invesco Assurance settled payments totalling Sh6.5 million after delays to six parties who make up the Kenya Motor Repairers Association.

Other underwriters probed by CAK over delayed payments are Invesco, AIG, Xplico and Trident.

Last year, the CAK had forced 18 insurance companies to pay Sh38 million to 20 vehicle repairers and five motor assessors that had waited for years.

CAK says its interventions in the sector have served to salvage companies from bankruptcy, saving hundreds of jobs in the process.

[email protected]

Source link


- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories



Please enter your comment!
Please enter your name here