In line with preparations for the adoption of the International Financial Reporting Standard 17 (IFRS 17) in Nigeria, the Federal Government has announced the inauguration of Insurance Industry Financial Reporting Working Group (IIFRWG).
The group constituted by the National Insurance Commission (NAICOM) was inaugurated recently in Lagos to give advisory and consultative services for the seamless adoption of IFRS17 in January 2022.
Speaking at the inauguration ceremony, Acting Commissioner of Insurance, Sunday Thomas, said the worrking group consists of members with relevant expertise and experience of insurance business, its accounting as well as financial instruments.
“If the effective date of implementation is not shifted again, it therefore means that Nigeria has only one year to prepare for the adoption of IFRS 17. It is against this backdrop that the Commission hereby constitutes a working group that will help to foster the country’s adoption of the IFRS 17 in line with best practice”.
According to Thomas, the working group will provide specialised knowledge to enhance an understanding of insurance specific issues and technical assessment of proposals. He added that the group will advise and support the commission and industry on areas like: disscuss technical assessment and interpretations issues arising from IFRS 17 and consider consistent application within the Nigerian insurance industry, identification of interpretation and implementation issues on insurance specific matters and consider implementation questions raised by operators, assist in the preparation and execution of activities that will facilitate the implementation of the adoption of IFRS 17 among others.
He said it is instructive to note that the IFRS 17 is more than an accounting issues and insurers will need to think holistically about the impact on their organizations.
Expressing his optimism about the development, he noted that the IFRS 17 will have significant implications on Information Technology systems, strategic management, business processes, actuarial services, treasury and employee skills.