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NAICOM warns insurers against further delay in 2012 accounts submission

By on August 22, 2013

Insurance companies yet to submit their 2012 financials to the National Insurance Commission (NAICOM) risk grave consequences should they delay further to obtain regulatory approvals.

NAICOM gave the warning Tuesday, expressing concerns over common errors noticed in the reports already submitted by some companies; stressing the need to speed up the submission process.

A statement by the commission said the operators, during a meeting with NAICOM “accepted there were challenges, but promised to do the needful.”

At the meeting chaired by the Deputy Commission, Finance and Administration, George Onekhena, accompanied by the Director, Supervision Department of NAICOM, Nicholas Opara, the commission also took time to address some areas of challenge to the companies.

Yesterday’s meeting with Chief Finance Officers (CFOs) and the external auditors of all the affected companies in the commission’s office at Abuja, followed worries over the continued delay by some insurance companies to submit their 2012 audited accounts to be prepared in line with the International Financial Reporting Standards (IFRS).

Almost eight months after the close of year 2012, NAICOM states that out of the 60 insurance companies operating in the country, only eight companies have got approval for their financial reports, while 31 insurers are yet to submit their accounts to the commission.

This development is taking place in spite of the fact that Section 26 of the Insurance Act 2003 provides that every insurer shall not later than 30th June of each year submit in writing to NAICOM, a balance sheet duly audited showing the financial position of the insurance business of the insurer and its subsidiaries at the close of that year.

The meeting is intended to provide the defaulting companies the opportunity to share from NAICOM experience on those problem areas observed in the course of the review of 2012 IFRS accounts, particularly the conversion processes including the basic reconciliations of NGAPP Accounts to IFRS.

 

 

[Daily Independent]