AKI trains insurance industry leaders on new financial reporting standard for insurance contracts
The Association of Kenya Insurers in partnership with SCR Academy Re, Morocco will on 30th November and 1st December 2022 train insurance industry leaders on the International Financial Reporting Standards (IFRS) -17 for insurance contracts.
IFRS -17 is set to kick off implementation from 1 January 2023. It replaces IFRS 4 which has been in place since 2004.
IFRS-17 is the first internationally consistent financial reporting standard for insurance contracts. Currently, IFRS 4 allows insurers to use different accounting policies to measure similar insurance contracts in different countries. This accounting model is inconsistent with IFRS standards applied by other industries in the same country, making it difficult to compare insurance to other industries in particular banking and investment management.
IFRS 17 provides consistent principles for all aspects of accounting for insurance products. It removes existing inconsistencies and enables investors, analysts, and others to meaningfully compare companies across industries and countries.
Earlier this year, AKI carried out a survey to establish the level of preparedness of insurance companies to adopt this new standard. Findings showed 50 percent readiness across the industry. One of the key challenges was skills gap and this is our basis for this training.
On the policy perspective, AKI is liaising with the Insurance Regulatory Authority (IRA) to develop industry guidelines that will ensure a smooth transition to this reporting standard. In line with other jurisdictions, this transition is expected take on average 2.5 to 3 years.
The two-day training has been sponsored by SCR Academy Re, the training subsidiary of Société Centrale de Réassurance that aims to develop technical expertise in insurance and reinsurance in Africa. The IFRS-17 training targets CEOs, board directors and team lead in finance, ICT, risk and compliance and actuarial services.