The Insurance Regulatory Authority (IRA) has placed three insurance companies under statutory management after they failed to meet mandatory solvency requirements and showed sustained financial deterioration.
The affected insurers are Trident Insurance Company, KUSCCO Mutual Assurance Limited, and Corporate Insurance Company.
Their management and operations will now be taken over by the Policyholders Compensation Fund (PCF), with the regulatory action taking effect on March 11, 2026.
In a statement issued Wednesday, IRA said the move was necessary to safeguard policyholders, creditors and the public while preventing further accumulation of risks and liabilities.
The authority said the decision followed extensive supervisory engagement with the three insurers.
During this process, IRA observed persistent financial instability and continued failure by the companies to meet mandatory solvency thresholds required under the law.
Despite several regulatory interventions and directives, the insurers did not demonstrate adequate capacity to restore compliance within the timelines set by the regulator.
“The Insurance Regulatory Authority has placed Trident Insurance Company, KUSCCO Mutual Assurance Limited and Corporate Insurance Company under statutory management in accordance with the provisions of the Insurance Act,” the regulator said.
“This regulatory action has been taken to safeguard the interests of policyholders, creditors and the general public, and to stop further accumulation of risks and liabilities.”
IRA said the Policyholders Compensation Fund will take control of the companies’ management and operations with immediate effect.
Under statutory management, the fund will oversee the affairs of the insurers, including assessment of liabilities, verification of claims and the orderly resolution of outstanding obligations in accordance with the law.
The regulator assured policyholders, claimants, intermediaries and other stakeholders that measures are being implemented to protect their interests.
“PCF will oversee the affairs of the companies, including assessment of liabilities, verification of claims and orderly resolution of outstanding obligations in line with the law,” IRA said.
The authority added that the intervention forms part of its broader mandate to regulate and supervise the insurance industry while safeguarding policyholders and maintaining public confidence in the sector.
Members of the public with inquiries were advised to contact the authority through its official communication channels, including its phone lines and email platforms for complaints and customer service.
