This archive report was first published on 19 November 2019.
On November 19, 2019, Business Daily reported on a shocking revelation that Kenyans paid Sh43 billion for non-existent insurance.
The Insurance Regulatory Authority has since revealed in court that brokers collected billions of shillings from customers, but failed to remit the money to insurance companies as required.
This failure to meet statutory obligations is not only immoral but also puts properties and investments worth billions at risk, as well as exposing insurance companies to fiscal challenges.
It is the responsibility of insurance agents to ensure that premiums paid by clients are remitted on time, and there is no reason why this is not happening already.
Insurance companies should also ensure that commissions rightfully owed to agents are duly paid at all times to avoid situations where agents fail to remit money on account of debts accrued.
