10 firms meet minimum insurance threshold

THE Pensions and Insurance Authority (PIA) says about 10 insurance companies out of 33 have met the minimum paid-up capital requirement aimed at making the industry competitive and robust.
Last year, Government signed statutory instrument (S1) 71 of 2015 to allow insurance companies increase their paid-up capital to the minimum of K20 million from K1 million, long-term and general insurers to K12 million and K10 million respectively from K1 million, while for brokers it stands at K100,000 from K50,000.
In an interview last week, PIA manager for analysis and policy insurance department Namakau Mundia Ntini said the authority is positive that by October next year, all the insurance companies would have met their minimum paid-up capital requirement.
Ms Ntini is hopeful that firms will continue to build a solid and competitive insurance sector to strengthen the financial base of the industry.
“All insurance companies in the market have to meet their targets by October 2017. It is encouraging to witness most companies recapitalising their businesses to make them viable and strong in a market that is competitive and about 10 companies have met the threshold,” she said.

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