OPERATORS in the insurance industry are far ahead of the counterparts in other sectors of the economy in the drive towards transition to International Financial Reporting Standard (IFRS).

Commending operators in the sector recently, NAICOM’s Acting Director, Supervision, Mr. Nicholas Opara as far as IFRS is concerned insurance operators’ are making concrete efforts to ensure that their transition is hitch-free.

Opara affirmed that the commission sees conversion to the new financial standards in line with directives issued by the Federal Government as a mission that must be accomplished within the record time.

“We have gone through the sensitisation programme and have since started the real thing.  We have done everything necessary in this regard and be as it may, we see it as a mission that will be accomplished,” he said.

According to him, the insurance regulatory body has done most of the necessary things to prepare operators and stakeholders in the industry to meet up with the conversion dates set for them by the Federal Government in this regard. He also observed that the industry is far ahead of many other industries with regard to readiness for conversion to the new financial reporting standards.

“We have met with the stakeholders at various levels and when I look back at what we have done to ensure smooth conversion to IFRS by the industry, I will say that we are not only ahead of other industries but we are also almost closer to the point of conversion,” Opara said.

The acting director also confirmed that the insurance regulator is on the verge of issuing new guidelines to guide operators, who are currently trying to convert to the new standards, saying when this is done; the industry must have succeeded with the programme.

“Once we issue the guidelines for conversion to the new IFRS standards, insurance companies should be able to keep their prepare balances for next year in with the new standards and when we do this we would have succeeded in ensuring implementation of the new standards by operators in the industry,” he said.

Before now, the Commissioner for Insurance, Mr. Fola Daniel had underscored the need of the urgent implementation of IFRS in the industry saying: “The commission is committed to the adoption of IFRS not only because it is one of the initiatives of the insurance industry under FSS 2020 programme, but also because it is an imperative for the recognition of our insurers and reinsurers.”

IFRS are principles-based standards, interpretations and framework adopted by the International Accounting Standards Board (IASB).    It seeks to refine the existing concepts to reflect the changes in markets, business practices and the economic environment that have occurred in the two or more decades since the concepts were first developed.