CFI, OS Thomas

By Ngozi Onyeakusi—The National Insurance Commission NAICOM has inaugurated the Nigerian Actuarial Society Discount Rate Committee (NAS-DRC).
Speaking while inaugurating the committee, the Commissioner for Insurance, Mr. Olorundare Sunday Thomas said the standing committee was 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.

Read His Full Remarks During The Inauguration

I am pleased to welcome you to the inaugural meeting of the Nigerian Actuarial
Society Discount Rate Committee (NAS-DRC). 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.
The membership of the NAS-DRC has been suitably 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.
It is apparent 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. Hence, the objectives of the NAS-DRC
includes:
i. To determine the risk-free yield curve for use by the insurance industry; and
ii. 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. Note also that the terms of reference remain as earlier circulated to
members.
I wish to conclude my remarks by thanking all nominated members for accepting to
serve on this commendable task. The insurance industry acknowledge your individual
and collective sacrifices.
I have the pleasure to inaugurate the NAS-DRC and I thank you for your attention. I
wish you all successful deliberations.