NAICOM boss Launches NAS-DRC to Strengthen Global Accounting standards
The Commissioner for Insurance, National Insurance Commission(NAICOM) Mr. Sunday Olorundare Thomas has inaugurated the Nigerian Actuarial Society (NAS) Discount Rate Committee (NAS-DRC).
Inauguratiing the committee in Abuja, Thomas said the NAS-DRC stakeholders is a standing committee, established to support the determination of standardized discount rate factors for use by the insurance industry and other stakeholders in the financial services sector, particularly in the implementation of the International Financial Reporting Standard 17 (IFRS 17) for Insurance Contracts.
He expressed his pleasure in welcoming the Nigerian Actuarial Society Discount Rate Committee (NAS-DRC), which comprises representatives from NAS, the National Insurance Commission (NAICOM), actuarial representatives from audit firms, and resident actuaries of insurance operators involved in annuity business.
Thomas said President of NAS will serve as the Chairman, while a representative from NAICOM, not below the rank of a Director, will serve as the Co-Chairman, NAS will provide the secretariat for the committee.
He emphasized the crucial role of actuaries in implementing IFRS 17 and the need for a credible, prudent, consistent, and sustainable discount rate that is not subject to manipulation by different stakeholders.
He further noted that the objectives of the NAS-DRC will include determining the risk-free yield curve for the insurance industry and providing commentary on market movements that may impact the risk-free yield curve determination.
“The inauguration of the NAS-DRC is expected to enhance accountability, prudence, and comparability in financial reporting, thereby supporting the stability of the Nigerian financial system. The Commissioner expressed his optimism that the committee’s deliberations and activities will have a positive impact on the Nigerian financial system, and he thanked the nominated members for accepting the task and acknowledged their individual and collective sacrifices.
He noted that NAS-DRC is expected to work diligently to fulfill its terms of reference and contribute to the advancement of financial reporting standards in Nigeria, he reaffirmed.
“The establishment of the NAS-DRC marks an important step towards enhancing transparency and reliability in the insurance industry and strengthening the overall financial system of Nigeria. As the committee begins its work, stakeholders are hopeful that the standardized discount rate factors determined by the NAS-DRC will promote consistency and integrity in financial reporting, ensuring the stability and growth of the Nigerian insurance sector”, he said.
