The National Insurance Commission has inaugurated the sub working groups (SWGs) of the insurance industry financial reporting working group (IIFRWG) to assist the industry provide guidance for seamless adoption of IFRS 17 effective 1st January, 2023 by the Nigerian insurance companies.
The Commissioner for Insurance, Mr. Sunday O. Thomas (pictured), while inaugurating the three sub groups, a body of experts, said their focus is to facilitate seamless adoption of IFRS 17 which is the strategic goal of the Commission. Priming the coming financial document as an enhancer, NAICOM boss said it assesses the effects insurance contracts have on any of the entity’s financial position, financial performance and cash flows.
Thomas reminds the insurance market that all operators will be on board the waiting IFRS 17 industry craft barely 20 months from now with the domesticated financial instructions having the capacity to facilitate transparency and accountability in financial reporting. Its adoption will send to the achieves IFRS 4 currently in use.
Chronicling efforts made and still ongoing, the CFI said the Commission has not rested on its oars since it issued the “roadmap” on the adoption of IFRS 17 insurance contract on January 28, 2020 which sets the tone and facilitates a coordinated process and action steps to be adopted by all insurance, reinsurance, Takaful and micro insurance companies in Nigeria.
Satisfied with the efforts recorded with the IIFRWG since its inauguration on March 2 2020 as an advisory and consultative team of experts, Thomas nudged the sub groups to do an excellent job and on schedule pointing out that, “if the effective date of application is not shifted further by the IASB, it therefore means that Nigeria insurance industry has less than two years to prepare for the adoption of IFRS 17.”
Going by the structured approach, the SWGs are the engines, the IIFRWG acts like the aircraft hull while the Commission coordinates the runways, instrument landing systems, and the control tower, to achieve the strategic goal of the Commission for the eventual IFRS 17 take off.