Most quarterly returns submitted by underwriters are not correct - NAICOM

Commissioner for Insurance Fola Daniel

Chuks Udo Okonta

Underwriters are in for another trouble as their 2013 quarterly returns submitted to the National Insurance Commission (NAICOM) are said to be incorrect, Inspen can report.

Our investigation revealed that the accounts submitted by most companies failed to comply with the set template. It was gathered that the issues identified in the accounts, stemmed from underwriters’ inability to align their 2012 accounts with International Financial Reporting Standard (IFRS) requirements.

A source in NAICOM, said underwriters have failed to comply with the regulatory reporting template issued by the commission to guide them on how to produce the quarterly returns, adding that the operators are yet to come to grip on how to complete the forms.

The source said: “If things are done properly, the first quarter reports are suppose to start with the audited balances of the previous year. But as it stands, some companies are yet to submit their financial statements for the year end. What will they carry over to the quarterly report?

“Again, the alternative is for them to start their first quarter report using the management figure. That means, somewhere along the line, they have to pass some journals to reconcile the opening balances in the management accounts with the audited positions. But, if you ask me whether this is being done correctly, my answer will be no.

“Most of the quarterly returns that are submitted may not be correct. The regulatory reporting template which we issued to the industry, the operators are yet to come to grip on how to complete the forms.

“Looking at some of the quarterly reports submitted, they are not in line with the requirement in that template. The reports are not properly completed and failed to give the required information.”

The source noted that the commission is working hard to address the issues, stressing that NAICOM would to go back to the industry with the approved template for quarterly returns to educate the operators on how to complete the forms.

“Considering the fact that most of the operators had difficulty in getting their 2012 accounts approved, we may allow them to walk back, that is using their approved accounts to prepare the quarterly returns.

“We may discard what they have submitted and use the approved results to produce the quarterly results, so that at the end of 2013 we would have a true reflection of what the quarterly should be,” the source added.