Is Your Insurance Company Stable? 5 Ways to Verify Your Underwriter in 2026

Check the Live IRA Licensing Status

Never assume a well-known brand is automatically compliant. The IRA regularly updates its list of licensed insurance companies, brokers, and agents.

The Action: Before renewing or signing a policy, visit the IRA Regulated Entities Portal.

What to look for: Ensure the company is listed as "Licensed" for the current calendar year. If they are under "Statutory Management" or have a "Suspended" status, stay away.

 Analyze the Capital Adequacy & Solvency Ratios

Under Kenyan law, insurers must maintain a specific capital cushion to absorb sudden massive spikes in claims.

The Science: Look at the company’s Solvency Ratio. A ratio of 100% means they have just enough to cover risks. The IRA pushes for a target of 150% or higher for maximum safety.

Where to find it: Serious underwriters publish their financial statements in national newspapers or on their corporate websites every quarter. Check the "Capital Adequacy" section of their balance sheet.

 Review the Claims Settlement Ratio (The Payout Track Record)

An insurance company's true value is measured by how fast and how willingly it pays out claims.

The Data: The IRA releases quarterly and annual industry reports. These documents highlight the volume of claims received versus the number of claims paid.

The Benchmark: Look for underwriters with a claims settlement rate above 70% in their specific class (e.g., motor or medical). Be cautious of companies with a backlog of unresolved, long-standing claims disputes.

 Evaluate Their Adaptation to IFRS 17 Financial Reporting

The global insurance industry shifted to IFRS 17, a strict accounting standard designed to make insurance financials completely transparent.

The Kenyan Context: Several local firms have faced regulatory fines because their internal systems failed to comply with this complex reporting structure.

The Rule of Thumb: Ask your agent or broker if the underwriter is fully IFRS 17 compliant. Companies that have successfully transitioned are far less likely to surprise the market with hidden financial losses.

 Check the Policyholders Compensation Fund (PCF) Standing

If worst comes to worst and an insurer collapses, the Policyholders Compensation Fund (PCF) is the safety net that compensates affected consumers up to a statutory limit (currently capped at KSh 250,000 per claim).

The Verification: Confirm that your underwriter is a fully paid-up member of the PCF. This ensures that even in bankruptcy, you have a legal channel to recover at least a portion of your losses.