By Tony Obiechina, Abuja
The National Insurance Commissioner, Mr Olorundare Sunday has inaugurated the Nigerian Actuarial Society Discount Rate Committee (NAS-DRC).
The Standing Committee is to support the setting of a standardized basis of determining discount rate factors for use by the insurance industry and other stakeholders in the financial services sector, particularly in the implementation of the International Financial Reporting Standard 17 (IFRS 17), Insurance Contracts.
Speaking at the inaugural meeting of the committee in Abuja, the NAICOM boss said the NAS-DRC is constituted as a standing committee to support the setting of a standardized basis of determining discount rate factors for use by the insurance industry and other stakeholders in the financial services sector, particularly in the implementation of the International Financial Reporting Standard 17 (IFRS 17), Insurance Contracts.
He disclosed that the membership of the NAS-DRC has been drawn from representatives of NAS, NAICOM, Actuarial representatives of Audit Firms, as well as Resident Actuaries of Insurance Operators (with annuity business).
The President of NAS and a representative of NAICOM (not below the rank of a Director) will serve as Chairman and Co-Chairman respectively, while the NAS shall provide the Secretariat.
Sunday said “the role of Actuaries in the implementation of IFRS 17 cannot be overemphasised, likewise the need for credible, prudent, consistent and sustainable discount rate devoid of possible manipulation by different stakeholders if left to determine same for individual company’s use”.
The objectives of the NAS-DRC include, to determine the risk-free yield curve for use by the insurance industry; and to provide commentary on any market movement that might impact on the determination of the risk-free yield curve.
“It is thus my sincere expectation that the inauguration of the NAS-DRC will no doubt enhance accountability, prudence and comparability in financial reporting and thereby support the stability in the Nigerian financial system. I am hopeful that the deliberations and activities of the NAS-DRC will bring about the desirable impact for the Nigerian financial system”, he added.
