IFRS: Brokers Cut cost with share services

From left:  President Nigerian Council of Registered Insurance Brokers (NCRIB) Ayodapo Shoderu presenting an award to Acting Managing Director WAPIC Insurance Group, Ashish Desai at the event in Lagos.

 

Chuks Udo Okonta

Determined to reduce cost, insurance brokers have decided to pool resources together to  engage consultants and auditors that would prepare their accounts in accordance to International Financial Reporting Standard (IFRS).

President Nigerian Council of Registered Insurance Brokers (NCRIB) Ayodapo Shoderu, who disclosed this at the council’s members evening in Lagos, said the harmonised reporting standard would also help to reduce the chances of errors, that would have lead to rejection and penalty by the regulator.

He debunked the claims by some brokers that the concept would impose great burden on them, adding that the decision was reached to help brokers meet up with the stipulated timeline for compliance and also reduce the cost they would have incurred if they go through the process alone.

He called on brokers to comply and pay the agreed fee to enable them maximise the benefits accruable from the initiative.

He said: “To assist members in compliance to IFRS directives, the governing board in its judgment decided to yield to the advice to imbibe share services scheme through the engagement of IFRS renowned consultants to assist all our members comply.

“It is believed that the engagement of consultants will reduce the monumental fees that would have been paid by individual companies should they go it all alone. Also, the harmonised reporting standards will reduce the chances of errors, leading to rejection and consequently penalty by the regulatory institutions.”

The National Insurance Commission (NAICOM) has thrown it support behind this initiative taken by brokers. The commission said the initiative would help brokers forestall the challenges faced by underwriters in aligning their accounts with the new reporting standard.