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Brokers must comply with IFRS — NAICOM

By on March 10, 2015

The National Insurance Commission has said that it will ensure the insurance brokers comply with the International Financial Reporting Standard which is the acceptable means of accounting in the sector.

The Director, Supervision, NAICOM, Mr. Opara Onwusereaka, said this during his opening remark at the training organised by NAICOM to assist the brokers to understand and adapt to the IFRS.

“The commission is assisting the brokers to comply with the IFRS because we are not impressed with the accounting reports we are getting from those who have submitted their accounts,” he said.

He said that the brokers were expected to transit to the IFRS in their (2013) financial accounts from the former accounting model.

Onwusereaka said the insurance companies were made to transit to the IFRS in 2012.

Presently, he noted not more than 200 brokers had submitted their 2013 financial accounts to the commission and only about 50 of the results had been approved as most of them did not meet the necessary requirements.

Normally, he said the brokers were expected to submit their annual accounts to the commission within the first six months of the financial period but expressed worry that they were still struggling to comply with the IFRS in the 2013 accounts when they should be submitting their 2014 accounts.

“After more than one year and two months, more than half of the brokers operating have not been able to submit their 2013 accounts and it is worrisome because 2014 is around now. We have done training for them before but we need to train them more on the IFRS so that they can do the needful and proceed to 2014,” he said.

Onwusereaka noted that if their accounts were not submitted on time, it would be challenging for them to get approval for some businesses, which was why NAICOM decided to come to their aid.

 

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