The Commissioner for Insurance/Chief Executive, National Insurance Commission (NAICOM), Mr. Sunday Thomas, has inaugurated the Nigerian Actuarial Society Discount Rate Committee (NAS-DRC) to establish a standardised basis for determining discount rate factors for use by the insurance industry and other stakeholders in the financial services sector.
He said the proposed template will be particularly helpful in the implementation of the International Financial Reporting Standard 17 (IFRS 17), and insurance contracts.
Speaking while inaugurating the committee, the NAICOM boss pointed out that the move would enhance accountability, prudence and comparability in financial reporting and thereby support the stability of the Nigerian financial system.
He noted that the membership of the committee was suitably drawn from representatives of NAS, NAICOM, actuarial representatives of audit firms, as well as Resident Actuaries of Insurance Operators (with annuity business).
The committee’s terms of reference were to determine the risk-free yield curve for use by the insurance industry and provide commentary on any market movement that might impact the determination of the risk-free yield curve.