By ROSEMARY ONUOHA
The National Insurance Commission, NAICOM, has said that insurance companies failed to reciprocate all efforts it made towards ensuring a smooth transition to the International Financial Reporting Standard, IFRS, by submitting poorly prepared 2012 financial statements.
NAICOM said that it made series of efforts to ensure that insurance companies buy into the IFRS mandate but the indifferent attitude of these insurers frustrated all their efforts.
Deputy Manager supervision of NAICOM, Mr. Cyprian Amadi, who disclosed this at a seminar for insurance correspondents in Ilorin, Kwara State, said that insurers refused to be carried along by the Commission in the transition to IFRS.
According to Amadi, NAICOM took time to train insurance companies on IFRS but they still did not get it right when they started submitting their financial statements.
Amadi said “What most insurance companies did was to employ the services of consultants who only copied what was written in textbooks without any practical experience.”
“These consultants have not been involved in practical IFRS transition as such cannot get it right and such attitude does not help anybody,” he said.
Amadi said that a sotiation whereby the Commission received companies financial statement with pages of queries is not a good experience on their part because NAICOM has done more than enough to guide them in getting it right.
Amadi lamented the situation where some insurance companies are yet to submit their 2012 financial statement to NAICOM saying that such attitude is not commendable.
Amadi said that these insurance companies do not bother much because the penalty for default is very minute and they can easily pay the penalty. “If the penalty is such that is not meagre and pain them hugely, then they will sit up.”