The National Insurance Commission (NAICOM) in collaboration with the industry stakeholders is mapping out strategies for an effective smooth adoption of the International Financial Reporting Standard (IFRS) 17.
Players who gathered at a one-day interactive session held in Lagos observed that with a good number of underwriting firms yet to tidy their financial books despite the December 31, 2023 deadline given to them to migrate from IFRS 4 to 17, players are apprehensive as to what action NAICOM would take.
Speaking at the programme, where the Nigerian Insurers Association (NIA) and Accounting Technical Committee (ATC) were present, the Commissioner for Insurance (CFI), Sunday Thomas, commended the organiser of the event for the initiative, particularly at a period when the industry is gearing up towards the adoption of IFRS-17.
Sunday also commended the role of the Nigeria Actuarial Society (NAS) audit firms and other consultants on the financial reporting value chain. He said the implementation presented the insurance industry with formidable challenges, particularly regarding the allocation of insurance service expenses.
According to him, achieving transparency, comparability and consistency in financial reporting by insurance operators would be a great milestone.
“We all know that the IFRS-17 has fundamentally transformed the way insurance contracts are accounted for as it introduced a principle-based approach that aims to improve transparency, comparability and consistency in financial reporting. While the overarching objective of IFRS-17 is commendable, the practical implications on expense allocation have posed intricate challenges for insurers worldwide,” he said.
He said the forum presented a timely opportunity for the experts to engage in collaborative discourse and share insights on navigating the complexities of the insurance service expenses allocation under IFRS-17.
The Director-General of NIA, Yetunde Ilori, stressed the need for collaboration among industry stakeholders, especially at a critical time of implementation of the new standard.
Also, the Chairman of the Accounting Technical Committee (ATC) of the NIA, Dr Emmanuel Otitolaiye, commended NAICOM for its unwavering support to the industry, particularly in providing guidance and encouraging industry-regulator interactions towards effective implementation of the standard.
