By Bisi Bamishe
The Nigerian Actuarial Society Discount Rate Committee (NAS-DRC) has been inaugurated by the Commissioner for Insurance Mr. Olorundare Sunday Thomas.
According to Thomas, the Standing Committee is to support the setting of a standardized basis of determining discount rate factors for use by the insurance industry and other stakeholders in the financial services sector, particularly in the implementation of the International Financial Reporting Standard 17 (IFRS 17), Insurance Contracts.
“The membership of the NAS-DRC has been suitably drawn from representatives of
NAS, NAICOM, Actuarial representatives of Audit Firms, as well as Resident Actuaries of
Insurance Operators (with annuity business). The President of NAS and a representative
of NAICOM (not below the rank of a Director) will serve as Chairman and Co-Chairman respectively, while the NAS shall provide the Secretariat”, Thomas said.
He added, “It is apparent the role of Actuaries in the implementation of IFRS 17 cannot be overemphasised, likewise the need for credible, prudent, consistent and sustainable discount rate devoid of possible manipulation by different stakeholders if left to
determine same for individual company’s use. Hence, the objectives of the NAS-DRC
includes: to determine the risk-free yield curve for use by the insurance industry; and and to provide commentary on any market movement that might impact on the
determination of the risk-free yield curve”.
