NAICOM set to implement IFRS 17 from Jan 2023

The National Insurance Commission (NAICOM) has declared that it would not go back on the proposed implementation of International Financial Reporting Standard (IFRS17) in insurance industry on January 1, 2023.

In its efforts to get insurance firms ready for the new finance reporting model, the Commission said it had set up sub-working groups to facilitate the migration.

Mr Olorundare Sunday Thomas, the Commissioner for Insurance, who disclosed this at the 2021 Insurance Directors’ conference held in Lagos, charged the board members of each insurance firm to get prepared for the IFRS 17 implementation because the deadline for migration was already near.

“I want to urge you also to follow up on the implementation of International Financial Reporting Standards. IFRS 17 in your companies. The implementation dateline of 1st January 2023 is right before us.

“Sufficient capacity building engagements have been conducted and sub-working groups inaugurated to facilitate the migration. You are therefore required to ensure that your entities are in full compliance and ready for the dateline”, the commissioner advised.

He further urged the directors to take the issue of development of insurance in the country serious directing them to work closely with their management since a lot was expected from them at the top level.

According to the Insurance Boss, “The Commission is working assiduously to open up the market particularly the retail end, conducting engagements with various agencies and state governments on the need to boost insurance culture across the country.

“However, the supply side which is the insurance companies must also be proactive with follow-ups in these places.

“If the industry is desirous of having significant impact on the nation’s GDP, it therefore must take retail business seriously. This has to start from the policy level and the directions clearly spelt out.

“This also must be supported with massive awareness campaign about insurance products across the geo-political zones taking into consideration peculiarity of each of the regions.”

He lamented that one issue that has been setting the industry on a reverse gear in its developmental efforts was the issue of claims settlement.

Thomas pointed out that amongst the operators, there were few operators that had been making the sector’s work a tedious one by not paying claims promptly.

He reminded the operators that they should know as a fact that insurance business was about payment of genuine claims, adding that anything short of that would continue to hurt insurance business in the country; thus giving the industry poor reputation, perception and image.