The Insurance Regulatory Authority of Kenya (IRA) is the sole authority charged with regulation and supervision of the

insurance industry Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...

within the

Republic of Kenya ) , national_anthem = " Ee Mungu Nguvu Yetu"() , image_map = , map_caption = , image_map2 = , capital = Nairobi , coordinates = , largest_city = Nairobi , ...

. It ensures compliance by insurance/reinsurance companies, protects

consumer A consumer is a person or a group who intends to order, or uses purchased goods, products, or services primarily for personal, social, family, household and similar needs, who is not directly related to entrepreneurial or business activities. ...

s and promotes a high degree of policy security for policyholders.

History

Background

The regulation of the insurance industry in Kenya was initially based on the UK Companies Act 1960. The Government of Kenya enacted the Insurance Act Kenya CAP 487 in 1985 with the aim of localizing regulation of the insurance business. The newly-enacted legislation established the Department of Insurance within the Ministry of the National Treasury and Planning, headed by a Commissioner of Insurance, to supervise the insurance sector.

Creation of IRA

The Insurance Act was amended in 2006 in an attempt to promote further efficient regulation of the insurance sector. The Department of Insurance was separated from its parent ministry and established as a body corporate known as the Insurance Regulatory Authority. With this amendment, not only did the department gain greater independence from bureaucratic hindrances, which improved its efficiency as intended, but the holder of the Commissioner's office gained additional responsibility in the secondary role of serving as the

Chief Executive Officer A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especial ...

of the newly-established Authority.

Functions

IRA is responsible for the maintenance of the stability of the insurance sector. Its main objectives and functions are found in the Insurance Act.

References

External links