NAICOM Inaugurates Committee on IFRS

Ebere Nwoji

The National Insurance Commission (NAICOM) has inaugurated the Nigerian Actuarial Society Discount Rate Committee (NAS-DRC) to address the insurance industry’s challenges and promote global accounting standards.

The commission said the committee would also ensure the implementation of the international financial reporting standards (IFRS-17) and see  that it is  fast-tracked. 

Speaking at the inauguration of the committee, the Commissioner for Insurance, Sunday Thomas, said the NAS-DRC was established to support the determination of standardised discount rate factors for use by the insurance industry and other stakeholders in the financial services sector.

He said this would help the implementation of the International Financial Reporting Standard (IFRS 17) for underwriting companies in the sector.

The commissioner explained that the objectives of the NAS-DRC would  include determining the risk-free yield curve for the insurance industry and providing commentary on market movements that may impact the risk-free yield curve determination.

“The inauguration of the NAS-DRC is expected to enhance accountability, prudence, and comparability in financial reporting, thereby supporting the stability of the Nigerian financial system,” he said.

Thomas welcomed the NAS-DRC, which comprises representatives from the Nigerian Actuarial Society (NAS), NAICOM, actuarial representatives from audit firms and resident actuaries of insurance operators involved in the annuity business.

He said NAS would provide the secretariat for the committee, while its president would  serve as the chairman, adding that a representative from NAICOM, not below the rank of a director, will serve as the Co-Chairman.

He emphasised the crucial role of actuaries in implementing IFRS 17 and the need for a credible, prudent, consistent, and sustainable discount rate that is not subject to manipulation by different stakeholders.