Insurance Companies are struggling as the two months extension deadline granted listed insurance companies to submit their 2023 Audited Financial Accounts in line with International Financial Reporting Standard (IFRS) 17 draws near.
None of the company has secured approval yet.
“No company has gotten approval up till now because we are all still struggling, according to the Chief Financial Officer (CFO) of one the big insurance companies.
According to the CFO, it is still a very big challenge to all operators, even the process owners, external auditors, actuaries as well as finance staff of insurance companies and the National Insurance Commission (NAICOM).
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Insurance companies statutorily have on or before 31st March to submit their full year audited financial accounts to the NGX Limited and the Securities and Exchange Commission (SEC).
But as the deadline approached, the insurance regulator, the National Insurance Commission (NAICOM) secured two months extension of submission for the insurance companies and this is meant to end 29th May 2024, precisely two weeks from now.
The CFO also informed that this year as well, insurers are adopting Internal Control over Financial Reporting (ICFR) and all entities are supposed to adopt it. Not only that, there is IFRS 9 to be adopted by those who were yet to adopt it, and it has to be adopted alongside IFRS 17.
“These are the challenges confronting the insurance industry and that is why up till now, no insurance company has been able to secure approval for its audited financial report for 2023, the CFO said.
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“NAICOM has not given approval to any company’s account and even they themselves are still grappling with understanding the issues around IFRS 17”.
Industry egg heads had lamented shortage of consulting actuaries and auditors familiar with the new International Financial Reporting Standard (IFRS) 17 in Nigeria, as major bottleneck slowing insurance companies’ transition and compliance.
This is as insurance companies struggle for the services of few available IFRS 17 Actuaries and Auditors in Nigeria, even as they had gone as far as Kenya and South African markets to get consultants.
