Shareholders should be prepared to monitor financial positions of their companies as the International Financial Reporting Standard (IFRS) 17 kicks off next month, the Commissioner for Insurance, National Insurance Commission (NAICOM), Mr. Sunday Thomas, has said.
Thomas, who spoke when members of Independent Shareholders Association of Nigeria (ISAN), visited the Commission in Abuja, urged them on education.
He told the shareholders that IFRS 17, would change how insurance companies report their statements.
He urged the shareholders to consult their companies on how they could be trained on the new reporting standard.
He noted that with the adoption of IFRS 17, financial statements of insurance companies would no longer carry gross premium, though the balance sheet will remain the same.
The regulator, who was excited by the visit, told the shareholders that NAICOM needs a robust relationship with them on regulation.
He submitted that NAICOM is committed to protection of stakeholders – policyholders; shareholders and residual owners.
Responding to the shareholders demand for better value of their shares at the Nigerian Exchange, Thomas said investor need to be very patient to maximise their profits, adding that there is future for the sector.
He told the shareholders that insurance companies do comply with the local content policy, adding that companies only cede abroad risks they do not have the capacity to underwrite.
Read Also: Shareholders praise NAICOM for restoring IEI Insurance
He said: “Shareholders need to be educated on how the insurance industry works and the capital market by looking beyond the financials.
“I implore shareholders to hold members of the board of their companies responsible for most problems suffered by their companies. As investors, you should be interested on how your investments are managed.
“I also urge you to promote corporate governance by ensuring competent individuals are elected as board members of their companies. You need to take responsibility of internal evaluation of board reports and comport yourselves during annual general meetings. Also, shareholders elected to internal audit committee to exercise their duties and ensure quality control”, he noted.
Responding, the National Coordinator Independent Shareholders Association of Nigeria, Moses Igbrude, applauded NAICOM for the meeting, whilst seeking for involvement of shareholders in major decisions taking on companies.
He expressed misgivings on how some foreign firms were allowed to take over 100 stakes in some companies without the involvement of minority shareholders.
He implored NAICOM to work together with insurance practitioners to promote insurance education, stressing that most Nigerians don’t buy insurance due to wrong perception arising from low awareness.