Nairobi, April 7 -- A growing number of insurance firms in Kenya have been placed under statutory management, sparking confusion and anxiety among customers.

The law allows the Insurance Regulatory Authority (IRA) to step in through statutory management in a bid to stabilise struggling insurers and protect customers.

Here is a breakdown of how the process works, the role of IRA and the Policyholders Compensation Fund (PCF), and what policyholders should expect.

What does it mean when an insurer is placed under statutory management?

It means the regulator has effectively taken control of the company because it is no longer operating soundly.

In many of the previous cases in Kenya, IRA appointed PCF to play this role. At that point, th...