PCF digitizes systems, securing trust in the insurance sector

Brian Mutua -MyGov

The Policyholders Compensation Fund is enhancing its claims management systems to deepen collaboration with insurance firms and regulatory agencies such as the Insurance Regulatory Authority (IRA).

“We are future focused. Our aim is to be a responsive, reliable, and transparent Fund that policyholders can count on during difficult times,” Simon Mbugua, the Chair of the Board of Trustees said.

Speaking during the 20th anniversary celebrations held in Nairobi, Mbugua said stakeholders are currently in talks to review the compensation amount of Sh250,000 upwards and consensus building around the Sh500,000 ceiling of policyholder claims.

The Chairman said that the 20-year journey has not been without challenges, but PCF’s resilience, prudent financial management, and adherence to good governance have earned it recognition as one of the most reliable compensation schemes in the region.

The Fund, which was established in 2005, has grown to become a critical pillar in the country’s financial safety net, protecting policyholders in the event of the collapse of insurance companies.

Over the past two decades, PCF has played a pivotal role in safeguarding the interests of insurance policyholders, ensuring that claims are met even when insurers become insolvent.

The Fund operates under the Insurance Act (Cap 487) and is administered by a Board of Trustees under the oversight of the National Treasury.

PCF Managing Trustee, Mr. Mohammed Sahal, emphasized the Fund’s commitment to enhancing public confidence in the insurance industry.

“For 20 years, PCF has stood as a symbol of security and reliability. We have not only compensated affected policyholders but have also worked to educate the public on the importance of insurance and the role of PCF,” Mr. Sahal said.

Since its inception, PCF has processed claims amounting to over Sh210 million by over one thousand claimants and continues to support thousands of affected individuals and businesses.

“We have compensated claimants of seven collapsed insurance companies; some have had the two-year compensation window closed while others are still open. Currently, we are compensating claimants of BlueShield Insurance, United Insurance, Invesco Assurance and Xplico Insurance,” he said.

Mr. Sahal noted that the compensation period for Concord Insurance, Standard Assurance and Resolution Insurance has lapsed.

The Managing Trustee added that in recent years, the Fund has expanded its mandate to include awareness creation, stakeholder engagement, and industry collaboration, ensuring that more Kenyans understand their rights and safeguards within the insurance sector.

To commemorate this milestone, he noted, PCF has rolled out a nationwide campaign dubbed “PCF Mtaani”, aimed at increasing public awareness of its services.

The campaign, the Trustee further said, targets grassroots communities and urban centers, leveraging partnerships with county governments, industry players, and community-based organizations.