Leadway Assurance Limited has said it is on a course to implement the International Financial Reporting Standard (IFRS 17), which will help standardize insurance accounting globally.
IFRS 17 (previously known as IFRS 4 Phase II) is an International Financial Reporting Standard developed by the International Accounting Standards Board (IASB) providing new standards for reporting profit emergence from insurance contracts, scheduled to take effect from January 1, 2023.
At a lecture series with media practitioners in Lagos, the underwriter noted that implementing the current standard will help users of accounts make sensible comparisons between companies, their past performance, their current financial position, and risk exposure.
Speaking on Navigating the New Financial Reporting Standard, Raphael Akomolede, from Leadway’s finance department, gave insights on the position of the firm regarding the implementation of the IFRS 17.
He said the company has completed solution design which takes care of Gap Analysis, Financial, and Operational Impact Assessment; Designed Future State of Finance Process/Technology Gap Analysis; Development, Documentation, and Review of Target Operating Model; Preparation of Technical documents and Reviews, and Vendor Selection for IFRS 17.
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He said presently, the relevant departments of the company are working simultaneously on System testing and Implementation (pre and post); Reviewing and Producing 2021 and 2022 financial positions, produce interim IFRS 17 compliant financial statements, including transition disclosure.
Speaking on the problem with the soon-to-be-replaced IFRS 4, he said the IFRS 17 replaces the interim standard that allows insurers to use local Generally Accepted Accounting Principles (GAAP) to measure insurance contracts; no single way to account for insurance contracts; existing accounting makes it hard for investors to see which groups of contracts are profit-making and which are not.
The impact of IFRS 17, according to him, includes improved comparability for the first time; relevant and updated measurement of insurance contract liabilities; a more intuitive presentation of financial performance and position; enhanced disclosure and transparency and a clear distinguishing of insurance activities from investment activities.
While commending the National Insurance Commission (NAICOM) for the Roadmap for the implementation of IFRS 17 for the insurance industry in Nigeria, he said the commission has been working seriously since 2019 towards ensuring the full adoption of IFRS 17 in the Nigerian insurance industry.
Speaking on Breaking Down the Power of Synergy, Joshua Ogbeifun of the strategy and special project department, Leadway Assurance, highlighted the strategy adopted by Leadway in enhancing its ambition of remaining the dominant insurance company in Nigeria in revenue and profit market share within the corporate and retail market segment.
He said the company is focusing on becoming a customer-centric organization with an efficient sales process and structure, partnering with organisations with the reach Leadway is seeking by providing data-driving customer insights and customer-led solutions.
