1 / 21

THE ROLE OF IRA

THE ROLE OF IRA. Presentation made to Public Servants in Kapenguria county on 27/11/2013 By Thomas V. Oduor. Contents. Who IRA is Why supervise the Insurance Industry Benefits of Supervision Steps Taken By IRA to ensure stability Policyholders Compensation Fund

xandy
Download Presentation

THE ROLE OF IRA

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. THE ROLE OF IRA Presentation made to Public Servants in Kapenguria county on 27/11/2013 By Thomas V. Oduor

  2. Contents • Who IRA is • Why supervise the Insurance Industry • Benefits of Supervision • Steps Taken By IRA to ensure stability • Policyholders Compensation Fund • Insurance Fraud Investigation Unit • Effects of Fraud on Insurance • Standardizing Insurance policies • Issuing Claims Guidelines • Why the Church • Conclusion

  3. Who is IRA? • IRA is a semi autonomous Government agency • Formed in 1st May 2006 through the Insurance Amendments Act. • Charged with regulating, supervising and developing the insurance industry in Kenya.

  4. Regulatory Structure

  5. General Functions of IRA • Regulate and supervise the insurance industry; • Formulate and enforce standards; • Licence all players; • Protect the interests of policy holders and beneficiaries; • Promote the development of the insurance industry;

  6. Why supervise the Insurance Industry? • Insurance is a business of trust and can be abused; • Insurance is a promise, a promise which must be kept; • Different Interests which must be managed well: • Policyholders expecting claims to be paid from the insurance fund • Investors/Shareholders expecting dividends from the same fund.

  7. Benefits of Supervision • Stable insurance industry • Better the image of the industry • Increased public confidence • Create competitive industry, reduced premium • Well distributed insurance services to increase access • Increased savings • Create environment for investments Create jobs

  8. General Functions of IRA • Regulate and supervise the insurance industry; • Formulate and enforce standards; • Licence all players; • Protect the interests of policy holders and beneficiaries; • Promote the development of the insurance industry;

  9. Steps Taken By IRA to ensure stability • Policy holders Compensation fund • Insurance Fraud Investigation Unit • Standardizing Insurance policies (all policies standardized by today) • Many guidelines on conduct of insurance business have been issued (Anti-Money Laundering, claims, Intermediaries)

  10. Policyholders Compensation Fund • Established in 2004 under the Insurance Act. • Occasioned by the collapse of a number of insurance companies in the 1970sand 90s • Funded by a levy from insurers • Policyholders contribute 0.25% of premium • Insurers contribute 0.25% of premium

  11. Policyholders Compensation Fund • The Fund pays claims left outstanding by collapsed insurers • Aims at creating confidence among policyholders • Life insurance companies are never wound up even where composite insurers collapse • You are urged to continue paying premiums under the life policies • Pay premiums to statutory managers

  12. Insurance Fraud Investigation Unit • IFIU was established in November 2011. • IFIU is a specialized unit of Directorate of Criminal Investigation • Mandate of investigating insurance related offences. • Established to enhance IRA’s capacity to tackle insurance fraud

  13. Insurance Fraud Investigation Unit (IFIU) • Receive reports of suspected insurance fraud. • Investigate the reports • Prepare for investigation and admin action. • Arrest and prosecute suspects in court.

  14. Effects of Fraud on buyers of Insurance • Increases cost of insurance services • Restricts quality of services offered • Affects insurer’s profitability and stability • Lowers public confidence in insurance • Taints the reputation of the insurance • Leads to collapse of insurers

  15. Standardizing Insurance policies • Current insurance policies very complex • The language used in small prints • IRA has taken steps to standardize policies • All policies currently standardized • Reason is to enable users to read and understand • Make it easy for you to comply with policy requirements

  16. Issuing Claims Guidelines • People fear buying insurance because they don’t know how to claim • IRA has issued claims guidelines to insurance companies to follow when administering claims • Once insurers admit liability and issue you with a Discharge Voucher, they must pay within 90 days. • If they fail to pay then complain to IRA

  17. Why Public Servants • Eye of the Government • The largest single workforce in Kenya • Wield significant influence among citizens. • Foot soldiers - represent the Government everywhere • Highly respected & trusted by public • Shape opinions, make decisions and help others in making decisions

  18. Conclusion • GOK is concerned about risks faced by public servants wherever they are • Loss of life and property worries all • IRA is created to protect your interests • You can direct your insurance complaints to IRA • IRA does not charge for the services it offers • IRA does not sell insurance

  19. Let us not suffer because of lack of knowledge Insurance is real

  20. THANK YOU Qs & As

  21. This presentation is made by: • Thomas Victor Oduor • Consumer Education Officer • Insurance Regulatory Authority

More Related