The Nigerian Actuarial Society Discount Rate Committee (NAS-DRC) was established by the National Insurance Commission (NAICOM) to solve some of the industry’s difficulties and advance international accounting standards.
The committee will also see to it that the international financial reporting standards (IFRS-17) are swiftly implemented in insurance contracts. The NAS-DRC was established to enable the establishment of standardised discount rate factors for use by the insurance industry and other stakeholders in the financial services sector, according to Sunday Thomas, Commissioner for Insurance, who spoke during the inauguration last weekend in Abuja. He claimed that doing this will benefit underwriting companies in the industry in implementing the International Financial Reporting Standard (IFRS 17).
The commissioner clarified that the NAS-DRC’s goals would be to establish the risk-free yield curve for the insurance sector and to offer opinion on market changes that might affect that conclusion.
“The inauguration of the NAS-DRC is expected to enhance accountability, prudence, and comparability in financial reporting, thereby supporting the stability of the Nigerian financial system,” he stated.
The Nigerian Actuarial Society (NAS), NAICOM, actuarial representatives from audit firms, and resident actuaries of insurance operators engaged in the annuity sector are all represented by the NAS-DRC, which Thomas warmly welcomed.
A representative from NAICOM, not below the position of a director, will serve as the Co-Chairman, he added, adding that NAS will supply the committee’s secretariat and its president will act as the committee’s chairman.
The commissioner emphasized the critical role played by actuaries in putting IFRS 17 into practice and the requirement for a credible, prudent, consistent, and sustainable discount rate that is not prone to manipulation by various parties.
Even as he congratulated the nominated members for accepting the responsibility and recognized their individual and collective efforts, he expressed optimism that the committee’s discussions and actions will have a favorable impact on the nation’s financial system.
Thomas emphasized that the NAS-DRC is expected to work hard to accomplish its mandate and make a positive impact on Nigeria’s financial reporting standards.
