Association of Kenya Insurance have threaten to stop the underwriting of public service vehicles{matatus).in their statement they claim the level of risk exposure is high and insurance firms are no longer in the the position to post profits.the study carried out by the association found out that there was huge number of fradelent claims in the PSV sector.
This comes as the insurance regulatory authorty placed blue shield insurance company under statutory management for failer to meet its financial obligation.this is sending alot of jitters to the sector.Before its placement under statutory management blue shield was the leading PSV underwritter.
The association is particular concern with the underwriting the mandatory third party PSV risk.Insurance firms unlike banking which have been posting good results the sector is experiencing a bad time this is caused by increase in road accident and fraud.this leads to the coolapsing of firms or recording some losses.
