Resolution Insurance: The Once Buoyant Firm Now On Verge Of Collapse

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Resolution Insurance: The Once Buoyant Firm Now On Verge Of Collapse
A collage photo of Resolution Insurance emblem and the CEO Peter Nduati

On 30th March, 2022, the sight of Resolution Insurance office swept clean by auctioneers left the internet with more questions than answers. The said office was left in an unwelcoming state with pieces of papers and a few dustbins spread on the floor like a dumpsite.

 

And it is now a fact that the company previously making huge profits has fallen on hard times. Resolution Insurance is now faced with an unknown future with the company working at reestablishing itself with a number of strategies.

According to information in the public domain, the insurance firm made an underwriting loss of Ksh 457 million in the financial year ended December, 2021. There have been cases where Kenyans insured with the company have been sent away from medical institutions or asked to pay in cash for services offered, then seek a compensation with Resolution Insurance.

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According to the company’s acting Managing Director Bernard Githinji, they have faced delays in getting a ksh 2 Billion capital injection that would loosen the cash flow crises. The company has therefore canceled plans for underwriting non-medical policies for a period of 3 months.

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General insurance has experienced delayed settlement of claims and non establishment of requisite reinsurance treaties. This exposes the policyholders and the company to huge cash flow risks should a claim arise.”

“In consultation with the regulator, it has been decided to stop underwriting of all new or renewing non-medical business with effect from 27th March, 2022 for a period of 90 days,” reads a notice from the company.

Additionally, the company is now seeking a change in the board of directors leadership.

Entrepreneur Who Founded Resolution Insurance 

Resolution Insurance was founded by Peter Nduati in 2002, then known as Resolution Health. It was simply a market leader in health assurance and dared into what was considered a risky venture.

Entrepreneur Peter Nduati. [Photo|Instagram]

Nduati incepted the firm to principally insure patients suffering chronic illnesses such as HIV/AIDS and diabetes. According to the serial entrepreneur, this niche had an untapped potential given most of the patients suffering such illnesses were adherent to drugs. In a past interview, Nduati said he had previously wanted to introduce the idea through the insurance companies he worked for but the matter was turned down.

Nduati intimates he was in a business of creating an impact in the society and began planning with an end in mind.

His interest in insurance began in the ’80s, shortly after he had graduated with a first class honors from Punjab State University. While in India, he honed his skills with an insurance broker company.

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When he jetted back to Kenya, he got employed as an executive officer in the ministry of education, then worked as a management trainee at Cannon Insurance.

Nduati then went to pursue a Masters in economics and insurance in UK . Before he incorporated Resolution Health, he worked with various companies such as Liason, Metropolitan Heath Group (chief executive) and AAR Health as the managing director.

Under the steering of Nduati, Resolution Health’s fruitful outcomes saw it grow tentacles into general insurance in 2013. It was the same year that the entrepreneur got awarded as the East Africa entrepreneur in the All Africa Business Leaders Awards.

Background and other interests 

Nduati was brought up in a family of 6 with a single mother as the breadwinner. His marriage life was not a bed of roses as he divorced his wife when he had two young daughters aged 7 and 2. He has brought up both daughters as a single parent.

Nduati also has interests in the music industry and is the executive producer of Pine Creek Records. He has previously held leadership roles at Impala rugby club, a sport which he passionately played while in high school.

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