By LOVETH AZODO, Lagos
The Nigeria Insurance Sector is ahead of most countries in Africa in the transition from International Financial Reporting Standard 4 (IFRS 4) to IFRS 17 and its Implementation.
The Commissioner For Insurance Mr Sunday Thomas confirmed that the submitted Insurance bill has gone through the first reading in National Assembly.
The NAICOM boss who revealed this at the ongoing Retreat for Insurance Journalists with theme: “Improving Stakeholders Perception 2023 and Beyond” in Uyo Awka Ibom state, stated that the implementation by insurance companies in the country has started and will be effected in the 2024 returns on transactions.
He assured that a lot of companies are on course, explaining that the commission had over time constituted teams comprising the big four and two actuarial firms which had worked assiduously.
“We have encouraged them to work together to minimize the cost of transition from IFRS 4 to IFRS 17, IFRS 4 was good but IFRS 17 is more about transparency. We are ready, they are set for 2023 to insert.”
“By virtue of my position engaging other countries in Africa we are way ahead of most jurisdictions as most don’t even know what it is or started anything. By the time the Insurance companies will be rendering the returns for 2023 transactions we will see where the gaps are and We will do everything possible to support the industry to fill those gaps as much as possible,” he said.
IFRS 17 is an International Financial Reporting Standard that was issued by the International Accounting Standards Board in May 2017. It will replace IFRS 4 on accounting for insurance contracts and has an effective date of 1 January 2023.
On the Insurance bill, he said unfortunately we couldn’t finalize the bill with the last regime because it came very late to the president and he could not assent to it before he left.
“The house of assembly are looking at it and it has gone through the first reading we are trying to see this concluded as soon as possible. We had very high hope that last regime was going to do it but that didn’t happen but we are not giving up our hope because that bill is a game changer and we are not just sitting and waiting we are preparing because we know the importance of it. When it is signed into an act, we can hit the ground running,” he said.
On the reviewed Third party Insurance, he stated that the commission is taking note of Insurance companies who are violating the new rates and will carry out necessary actions when due.
However, he revealed that underwriters have been making positive commendations on the impact of the new rates and increased benefits.
Speaking on settling insurance claims, he noted that the commission has done a lot on ensuring that no underwriter mars the industry image with inability to Settle claims.
“Very soon, you will begin to see on papers and media platforms where companies will begin to advertise asking those that have claims to come up with their documents to enable them conclude the documentation and effect claims payments. We have written to them and given them the time frame to get this done, if they don’t do it, there must be consequences but we believe they will get it done.”
“Why are we saying this? Because most of them have issues of non documentation and no completion of documentation that will make the companies effect the payment but for those companies with complete documentation, I have to call sometimes and ask them to do it before 72hrs but it is not supposed to be so but they should do it willingly. It is few of those that have not paid are the ones causing this problem. But there are so many claims that were already paid and that is why we are still in business. Of course, nobody is going to talk about that but we are doing so much in paying claims,” he said.
Business News1 week ago
News1 week ago