‘Implementation of IFRS 17 to enhance insurance industry’s perception’

Leadway Assurance Company Limited anticipates a revitalized insurance sector as insurance operators adopt the International Financial Reporting Standard (IFRS). Mr. Raphael Akomolede from Leadway’s Finance Department highlighted that IFRS provides a more intuitive representation of financial performance and position. During a workshop organized by Leadway Assurance for the Nigerian Association of Insurance and Pension Editors (NAIPE), Akomolede discussed the benefits of IFRS 17 implementation, including improved comparability, accurate measurement of insurance contract liabilities, transparent financial presentation, enhanced disclosure, and a clear distinction between insurance and investment activities. The primary objective of IFRS is to standardize global insurance accounting, facilitating meaningful comparisons between companies, their historical performance, current financial position, and risk exposure. Akomolede also highlighted the limitations of the previous interim standard, IFRS 4, which lacked uniformity in accounting for insurance contracts and obscured investors’ ability to assess the profitability of different contract groups.