Insurers’ 2011 accounts flaw with falsification – NAICOM

Insurers’ 2011 accounts flaw with falsification – NAICOM

Chuks Udo Okonta

Most insurance companies reported bloated premium income in their last year financial account presented to the National Insurance Commission (NAICOM) Inspen has learnt.

It was gathered that most companies reported assets which never existed and outstanding premiums which were not written or that have been collected.

These revelations were made at a meeting, NAICOM had with external auditors of insurance companies and brokers in Lagos.

Director Supervision NAICOM, Opara Nicholas, said some companies reported bloated premium income, adding that a case in point was a company that reported a premium income above N3 billion and on examination by NAICOM the premium was actually about N2 billion.

He noted that the commission observed that most outstanding premium in the books of some companies were not written and in some cases have been collected. He said the commission also observed that most investments reported in the books of some companies are not in existence.

Nicholas said the issue of non-existing assets was rampant in last year accounts submitted by the operators to the commission. He noted that most companies owe the Federal Inland Revenue Service (FIRS), stating that a company owed the agency over N1 billion but recorded in its book liability below the amount.

He said some companies submitted un-finished accounts to the commission, adding that there were also issue of under-reporting and non-reporting of outstanding claims.

He urged auditors to be professional in carrying out their duties, stressing that the poor preparation of the accounts have laden the commission with responsibilities.

Deputy Commissioner Finance and Administration NAICOM, George Onekhena, told the auditors that the commission would begin to hold them responsible for their verdicts on the books of companies.

He noted that the NAICOM is resolute to see that companies meet the deadline on International Financial Reporting Standard (IFRS). He said the commission is investing on training and capacity building to ensure that the operators transit to IFRS seamlessly.

He said NAICOM would collaborate with the Financial Reporting Council to penalise any auditor that performed below required standard.