29 November 2024 12:00 am Views - 27
Members of the delegation from Nepal with Ceylinco Life senior management
A delegation comprising of the chairman of the Nepal Insurance Authority and members of the Life Insurance Association of Nepal, represented by CEOs and senior management of 10 life insurance companies in Nepal, visited Ceylinco Life recently.
The discussions focused on Ceylinco Life’s insights on the adoption of IFRS 17 – the International Financial Reporting Standard pertaining to insurance contracts and the Risk-Based Capital (RBC) model, as a prelude to the adoption of these standards for the life insurance industry in Nepal. Ceylinco Life briefed the delegation on its experience on the implementation of the RBC model, timelines, challenges and post-implementation processes.
“We will make the transition from IFRS 4 to IFRS 17 in 2026, with a parallel run in 2025,” Ceylinco Life Chairman R. Renganathan said.
“And are happy to provide our expertise to the life insurance industry of Nepal. IFRS 17 is important because it provides consistent principles for all aspects of accounting for insurance contracts and removes inconsistencies, thereby enabling investors and analysts to accurately compare companies, contracts and industries.”
“Ceylinco Life’s implementation experience has surely provided us a great insight into practical challenges that need to be addressed for the effective implementation of RBC and IFRS 17,” said Nepal Life Insurance Association President and Nepal Citizen Life Insurance Co. Ltd CEO Poshak Raj Paudel.
“We, as part of the regulatory body - the Nepal Insurance Association, are willing to provide the necessary support and not just regulate the industry but work as a facilitator for the companies,” said Nepal Insurance Authority Chairman Surya Prasad Silwal.
IFRS 17 requires a company to measure insurance contracts using updated estimates and assumptions that reflect the timing of cash flows and any uncertainty relating to insurance contracts. This requirement results in transparent reporting about a company’s financial position and risk.