Chuks Udo Okonta
The Commissioner for Insurance Fola Daniel has said the
National Insurance Commission (NAICOM) is working assiduously to ensure 360-degree credibility on the financial accounts of operators in the industry.
Daniel told Inspen that
he is not comfortable when would-be investors treat the industry’s accounts
with disdain, adding that NAICOM is committed to making operators live up to
the industry’s principle of utmost good faith.
Daniel noted that International Financial Reporting Standard
(IFRS) transition is not an option, but an imperative, and so, there is no two
ways about it. He maintained that the commission places great priority on
ensuring that operator’s financials beginning from 2012 accounts are credible.
He said the commission had made frantic effort to ensure
that operators have seamless transmission to IFRS, adding that the delay
presently observed in the approval of some operator’s accounts is because the
results do not meet the desired standard.
He said: “As early as January 2011, we called on Chief
Executive Officers (CEOs) of all insurance companies, their external auditors
to a workshop, and we had two more workshops as a follow-up in the same year
and did same last year. And that was why within the financial regulators,
NAICOM was given the chairmanship, because we were leading even the bankers in
IFRS conversion.
“Unfortunately, we do not regulate the external auditors, all
we can do, is to get them understand what IFRS is all about, but they slack.
The problem is that many of these accounts were done in a way that is not IFRS compliant.
IFRS transition is not an option, but an imperative. So, there is no two ways about it. I think
what is key, to us in NAICOM is that our financials beginning from 2012
accounts, must be credible.
“I do not feel good as Commissioner for Insurance, when a
would-be investor from South Africa, looks at our financials, he says it is a
joke and throws it away, because it does not have credibility. That is not good
for us as an industry. Our industry operates under the principle of utmost good
faith, so every paper we wave must be credible.
“What we are trying to do is to ensure that there is 360-degree credibility and that is what we would have. A few of the companies have
been approved so far. “
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