STATEMENT BY THE COMMISSIONER FOR INSURANCE AT THE INAUGURATION CEREMONY OF THE SUB WORKING GROUPS (SWGs) OF INSURANCE INDUSTRY FINANCIAL REPORTING WORKING GROUP (llFRWG) ON 15th MAY, 2021 AT THE ORIENTAL HOTEL, LAGOS
PROTOCOLS
I warmly welcome you all to this special inauguration ceremony of the Sub Working Groups (SWGs) of the Insurance Industry Financial Reporting Working Group (llFRWG), being constituted to assist the Insurance Industry Financial
Reporting Working Group (llFRW) providing guidance for seamless adoption of IFRS 17 effective 1st January, 2023 by the Nigerian insurance companies.
The Insurance Industry Working Group (llFRWG) which is an initiative of the Commission was inaugurated at this same venue on 2nd of March 2020 as an advisory and consultative team of experts for the purpose of seamless adoption of IFRS 17 in Nigeria. This initiative is in line with the Commission’s strategic goal as IFRS 17 will facilitate transparency and accountability in financial reporting. On this note, I am glad to state that the Working Group has performed creditably well and we appreciate all the members for selfless service to the Nigerian insurance industry in this journey to
IFRS 17.
We all know that in May 2017 the International Accounting Standard Board (IASB) issued the international Financial Reporting Standard 17 (IFRS 17) Insurance Contract which will replace the present IFRS 4 on accounting for insurance contracts with an effective date of January 01, 2023.
Thus, beginning from January 01, 2023, all insurance and reinsurance contracts must be reported in accordance with IFRS 17 whose
objective is to ensure that an provides relevant information by that faithfully represents the insurance contracts. This information forms the basis for users of financial statements to assess the effect that insurance contracts have on the entity’s financial position, financial performance and cash flows.
If the effective date of application is not shifted further by the IASB, it therefore means that Nigeria insurance industry has less than two
(2) years to prepare for the adoption of IFRS 17. It is against this backdrop that the Commission hereby constitutes a Sub Working Group that will help to foster the country’s adoption of the IFRS 17 in line best practice.
The Commission had equally issued a “Roadmap” on Adoption of IFRS 17 Insurance Contract for Insurance Industry in Nigeria” on January 28, 2020. The activities and timelines in the Roadmap are intended to set the tone and facilitate a coordinated process and action steps. The Roadmap was issued for general adoption by all Insurance, Reinsurance, Takaful and Micro Insurance Companies in Nigeria.
In addition to the inauguration of the llFRWG and issuance of the Roadmap, the Commission had
organized an IFRS awareness training on IFRS 17 for CEOs,
Non-Executive Directors and Accountants of insurance and Re-insurance companies in Nigeria. The two days awareness training session was equally a huge success.
It is now in furtherance to providing technical recommendations and production of relevant guidance for the implementation of IFRS 17 that members of the IIFRWG is now grouped into SWG that we are today inaugurating. The Sub Working Groups are constituted to assist the IIFRWG in the achievement of it
mandates by considering those
technical aspects in the implementation of IFRS 17 and that will support in the seamless transition. It is on this note that the llFRWG had identified the following three (3) critical sub working groups namely:
1. Accounting, Disclosure and Reporting Sub-Working Group
– to assist on technical issues relating accounting
2. Technical, Actuarial, Data Governance, Process and Systems Sub-Working Group – to assist on technical issues relating to actuarial, data and
IT
3. Policy and Methodology Sub-Working Group to
interpret requirements and draft methodologies and policies
More detail terms of reference for each SWG will be read during their inauguration.
Members of the various SWGs comprises some selected members of the IIFRWG and the co-opted members selected from the various organisations. Membership of each of the SWG is selected based on a member area of strength in terms of knowledge and experience to contribute meaningfully to the achievement of the assignment of the SWG. The aim is to ensure that the views from stakeholders interested in insurance financial reporting issues are properly considered in discussions at SWG.
It is important to reinstate that the Sub Working Group is advisory in nature. Thus, the Sub Working Group’s output will always take the form of recommendation to the IIFRWG for further consideration.
I wish to state that the Commission will continue to give its full support to the Sub Working Groups to facilitate their smooth working and in achieving the set goals.
Distinguished ladies and gentlemen,l wish you all fruitful deliberation in your various SWG and success as we work together to overcome challenges in the adoption of the IFRS 17 in the Nigerian insurance industry.
Thank you and God bless.
