The June 30 deadline given to insurance companies to submit their full year financial accounts for any given year, may not be feasible for 2012 accounts, as operators may have a lot to battle with in an effort to comply with the International Financial Reporting Standard (IFRS), which has taken off in the sector.
As at last count, only about three out of the 60 insurance and re-insurance firms have so far sent their draft copies compliant accounts to the National Insurance Commission (NAICOM).
Nicholas Opara, the director supervision NAICOM, who disclosed this at a workshop in Lagos, said the drafts were returned to the companies as there are still areas to be worked on.
He said financial reports of operators beginning from the previous year have been of great concern to the industry, being the foundation for migration to new financial reporting regime. He said: “At the moment, no company has submitted full IFRS compliant account. Only three companies that have sent in their drafts, which we have returned to them as there are still many things they are yet to get right.
“The 2012 reports are special because it is different from what we have been doing in the past.”
According to a roadmap to guide companies’ on transition to IFRS, insurance and reinsurance companies classified under public interest entities are expected to start their transition from January 01, 2011, while the insurance brokers classified under other public interest entities will take their turn in 2012.
The transition from the National Standard to IFRS was endorsed by the Federal Government on July 28, 2010, took off January 1, 2012.
Fola Daniel, commissioner for Insurance, on efforts by NAICOM to ensure the actualisation of the IFRS initiative said the commission has been engaging operators, auditors, directors and management of companies on how to seamlessly migrate to the initiative.
He said two main outcomes have been reached by NAICOM and stakeholders on the initiative, adding that first, it was agreed that the market should adopt common approach to IFRS provided that such option will not place any individual company or the market at a competitive disadvantage domestically and internationally.