Implication of IFRS 17 on the Operational Performance of Listed Insurance Companies in Nigeria

Tunji Shiyanbola; Joseph Bartholomew Matoh; Ogunwale Mudashiru Olanrewaju; Ijaduola Anuoluwapo

doi:doi:10.11648/j.jfa.20221005.13

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Implication of IFRS 17 on the Operational Performance of Listed Insurance Companies in Nigeria

Tunji Shiyanbola, Joseph Bartholomew Matoh, Ogunwale Mudashiru Olanrewaju, Ijaduola Anuoluwapo

Published in Journal of Finance and Accounting (Volume 10, Issue 5)

Received: 16 August 2022 Accepted: 16 September 2022 Published: 28 September 2022

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Abstract

Although the application of IFRS 17 will generally affect the system and data required by insurance companies, the choice of measurement and models, and internal control system, discussion surrounding the standard suggests it will be an improvement on the former standard which failed to provide acceptable options to the insurance companies. Hence, this study examined the implication of IFRS 17 on the operational performance of listed insurance companies in Nigeria. Being a specific standard, a survey research design was employed in selecting at random 100 respondents with relevant profession expertise. Correlation and regression analysis were employed and applied using SPSS in explaining the implication of IFRS 17 on operational performance of the insurance companies under review, System data, internal control and measurement models were used as proxies for IFRS 17 and tailored questions developed to sample respondents’ opinion. The result of the analysis revealed that, change in system and data, and measurement models have effect on operational performance of insurance companies in Nigeria. The study therefore recommends that, insurance companies put the necessary system and structure in place to support in adoption and implementation of the standard. In addition, measurement and models must be selected to suit the nature of operations within the company. Finally, the financial reporting council of Nigeria (FRCN) should continue to ensure that the adoption and application of new standards is encouraged.

Published in	Journal of Finance and Accounting (Volume 10, Issue 5)
DOI	10.11648/j.jfa.20221005.13
Page(s)	215-222
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Companies, Contract, Insurance, Internal Control, Measurement, Models, Operational Performance

References

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[4]	Deloitte. (2021). The influence of IFRS 17 on reward KPIs – Volatility of pay parameters and new opportunities (1–7).
[5]	EY. (2020). The deferral of IFRS 17, and the impact of COVID-19 Contents (1–10).
[6]	Fang, K., Jiang, Y., & Song, M. (2016). Customer profitability forecasting using Big Data analytics: A case study of the insurance industry. Computers and Industrial Engineering, 101, 554–564. https://doi.org/10.1016/j.cie.2016.09.011
[7]	Ford, M., Penzler, P., & Watson, W. T. (2017). IFRS 17 – Key Issues and Interpretation.
[8]	Gujarati, N. D. (2004) Basic econometrics. McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc. 5^th edition.
[9]	Hafiz, M. M., Bagudo, M. M., & Abubakar, S. (2022). Value relevance of International Financial Reporting Standard (IFRS) 4 of listed Nigerian Insurence Firms. Gusau Journal of Accounting and Finance, 3 (1), 1–12.
[10]	Hansen, J. S., & Schmidt, M. (2020). IFRS 17 : Forsikringskontrakter. Copenhagen Business School, September 2020, 1–80.
[11]	Jeremiah, K. (2021). Concerns as FG insists on implementation of IFRS 17. Guardian Newspapers, 1–10.
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[13]	KPMG. (2017). IFRS 17 is an opportunity to rethink and revolutionise accounting and steering in the insurance industry. International Financial Journal, 1 (11), 1–20.
[14]	NAICOM (2018) Guidelines for the regulation of insurance brokers in Nigeria. Guidelines-for-the-Regulation-of-Insurance-Brokers-in-Nigeria-ZERO-DRAFT-27.06.2018.pdf (ncrib.net) 1-90.
[15]	Oji, H. (2018, March 8). Investors worry over stagnation in insurance share prices. Retrieved from: https://guardian.ng/business-services/money/investors-worry-over-stagnation- in-insurance-share-prices/
[16]	Onyekwelu, U. L. & Ubesie, M. C (2016), Relevance of International Financial Reporting Standards on Accounting Quality in Nigeria. Research Journal of Finance and Accounting 7 (15), 39-46, www.iiste.org.
[17]	PricewaterhouseCoopers (2015). Africa insurance trends. Pricewatercooper,. https://www.pwc.com/ng/en/assets/pdf/nigeria-insurance-survey.pdf
[18]	PWC. (2021). In depth A look at current financial reporting issues. Inform. Pwc. Com, (6), 1–10.
[19]	Satuluri, R. K., & Radhika, R. (2021). Measures to improve life insurance profitability in India. Indian Journal of Finance and Banking, 5 (2), 98–105.

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APA Style

Tunji Shiyanbola, Joseph Bartholomew Matoh, Ogunwale Mudashiru Olanrewaju, Ijaduola Anuoluwapo. (2022). Implication of IFRS 17 on the Operational Performance of Listed Insurance Companies in Nigeria. Journal of Finance and Accounting, 10(5), 215-222. https://doi.org/10.11648/j.jfa.20221005.13

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ACS Style

Tunji Shiyanbola; Joseph Bartholomew Matoh; Ogunwale Mudashiru Olanrewaju; Ijaduola Anuoluwapo. Implication of IFRS 17 on the Operational Performance of Listed Insurance Companies in Nigeria. J. Finance Account. 2022, 10(5), 215-222. doi: 10.11648/j.jfa.20221005.13

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AMA Style

Tunji Shiyanbola, Joseph Bartholomew Matoh, Ogunwale Mudashiru Olanrewaju, Ijaduola Anuoluwapo. Implication of IFRS 17 on the Operational Performance of Listed Insurance Companies in Nigeria. J Finance Account. 2022;10(5):215-222. doi: 10.11648/j.jfa.20221005.13

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@article{10.11648/j.jfa.20221005.13,
  author = {Tunji Shiyanbola and Joseph Bartholomew Matoh and Ogunwale Mudashiru Olanrewaju and Ijaduola Anuoluwapo},
  title = {Implication of IFRS 17 on the Operational Performance of Listed Insurance Companies in Nigeria},
  journal = {Journal of Finance and Accounting},
  volume = {10},
  number = {5},
  pages = {215-222},
  doi = {10.11648/j.jfa.20221005.13},
  url = {https://doi.org/10.11648/j.jfa.20221005.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20221005.13},
  abstract = {Although the application of IFRS 17 will generally affect the system and data required by insurance companies, the choice of measurement and models, and internal control system, discussion surrounding the standard suggests it will be an improvement on the former standard which failed to provide acceptable options to the insurance companies. Hence, this study examined the implication of IFRS 17 on the operational performance of listed insurance companies in Nigeria. Being a specific standard, a survey research design was employed in selecting at random 100 respondents with relevant profession expertise. Correlation and regression analysis were employed and applied using SPSS in explaining the implication of IFRS 17 on operational performance of the insurance companies under review, System data, internal control and measurement models were used as proxies for IFRS 17 and tailored questions developed to sample respondents’ opinion. The result of the analysis revealed that, change in system and data, and measurement models have effect on operational performance of insurance companies in Nigeria. The study therefore recommends that, insurance companies put the necessary system and structure in place to support in adoption and implementation of the standard. In addition, measurement and models must be selected to suit the nature of operations within the company. Finally, the financial reporting council of Nigeria (FRCN) should continue to ensure that the adoption and application of new standards is encouraged.},
 year = {2022}
}

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TY  - JOUR
T1  - Implication of IFRS 17 on the Operational Performance of Listed Insurance Companies in Nigeria
AU  - Tunji Shiyanbola
AU  - Joseph Bartholomew Matoh
AU  - Ogunwale Mudashiru Olanrewaju
AU  - Ijaduola Anuoluwapo
Y1  - 2022/09/28
PY  - 2022
N1  - https://doi.org/10.11648/j.jfa.20221005.13
DO  - 10.11648/j.jfa.20221005.13
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 215
EP  - 222
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20221005.13
AB  - Although the application of IFRS 17 will generally affect the system and data required by insurance companies, the choice of measurement and models, and internal control system, discussion surrounding the standard suggests it will be an improvement on the former standard which failed to provide acceptable options to the insurance companies. Hence, this study examined the implication of IFRS 17 on the operational performance of listed insurance companies in Nigeria. Being a specific standard, a survey research design was employed in selecting at random 100 respondents with relevant profession expertise. Correlation and regression analysis were employed and applied using SPSS in explaining the implication of IFRS 17 on operational performance of the insurance companies under review, System data, internal control and measurement models were used as proxies for IFRS 17 and tailored questions developed to sample respondents’ opinion. The result of the analysis revealed that, change in system and data, and measurement models have effect on operational performance of insurance companies in Nigeria. The study therefore recommends that, insurance companies put the necessary system and structure in place to support in adoption and implementation of the standard. In addition, measurement and models must be selected to suit the nature of operations within the company. Finally, the financial reporting council of Nigeria (FRCN) should continue to ensure that the adoption and application of new standards is encouraged.
VL  - 10
IS  - 5
ER  -

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Author Information

Tunji Shiyanbola

Department of Accounting, Babcock University, Ilishan Remo, Nigeria
Joseph Bartholomew Matoh

Department of Accounting, Babcock University, Ilishan Remo, Nigeria
Ogunwale Mudashiru Olanrewaju

Department of Accounting, Babcock University, Ilishan Remo, Nigeria
Ijaduola Anuoluwapo

Department of Accounting, Babcock University, Ilishan Remo, Nigeria

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Plain Text BibTeX RIS

APA Style

Tunji Shiyanbola, Joseph Bartholomew Matoh, Ogunwale Mudashiru Olanrewaju, Ijaduola Anuoluwapo. (2022). Implication of IFRS 17 on the Operational Performance of Listed Insurance Companies in Nigeria. Journal of Finance and Accounting, 10(5), 215-222. https://doi.org/10.11648/j.jfa.20221005.13

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ACS Style

Tunji Shiyanbola; Joseph Bartholomew Matoh; Ogunwale Mudashiru Olanrewaju; Ijaduola Anuoluwapo. Implication of IFRS 17 on the Operational Performance of Listed Insurance Companies in Nigeria. J. Finance Account. 2022, 10(5), 215-222. doi: 10.11648/j.jfa.20221005.13

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AMA Style

Tunji Shiyanbola, Joseph Bartholomew Matoh, Ogunwale Mudashiru Olanrewaju, Ijaduola Anuoluwapo. Implication of IFRS 17 on the Operational Performance of Listed Insurance Companies in Nigeria. J Finance Account. 2022;10(5):215-222. doi: 10.11648/j.jfa.20221005.13

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@article{10.11648/j.jfa.20221005.13,
  author = {Tunji Shiyanbola and Joseph Bartholomew Matoh and Ogunwale Mudashiru Olanrewaju and Ijaduola Anuoluwapo},
  title = {Implication of IFRS 17 on the Operational Performance of Listed Insurance Companies in Nigeria},
  journal = {Journal of Finance and Accounting},
  volume = {10},
  number = {5},
  pages = {215-222},
  doi = {10.11648/j.jfa.20221005.13},
  url = {https://doi.org/10.11648/j.jfa.20221005.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20221005.13},
  abstract = {Although the application of IFRS 17 will generally affect the system and data required by insurance companies, the choice of measurement and models, and internal control system, discussion surrounding the standard suggests it will be an improvement on the former standard which failed to provide acceptable options to the insurance companies. Hence, this study examined the implication of IFRS 17 on the operational performance of listed insurance companies in Nigeria. Being a specific standard, a survey research design was employed in selecting at random 100 respondents with relevant profession expertise. Correlation and regression analysis were employed and applied using SPSS in explaining the implication of IFRS 17 on operational performance of the insurance companies under review, System data, internal control and measurement models were used as proxies for IFRS 17 and tailored questions developed to sample respondents’ opinion. The result of the analysis revealed that, change in system and data, and measurement models have effect on operational performance of insurance companies in Nigeria. The study therefore recommends that, insurance companies put the necessary system and structure in place to support in adoption and implementation of the standard. In addition, measurement and models must be selected to suit the nature of operations within the company. Finally, the financial reporting council of Nigeria (FRCN) should continue to ensure that the adoption and application of new standards is encouraged.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Implication of IFRS 17 on the Operational Performance of Listed Insurance Companies in Nigeria
AU  - Tunji Shiyanbola
AU  - Joseph Bartholomew Matoh
AU  - Ogunwale Mudashiru Olanrewaju
AU  - Ijaduola Anuoluwapo
Y1  - 2022/09/28
PY  - 2022
N1  - https://doi.org/10.11648/j.jfa.20221005.13
DO  - 10.11648/j.jfa.20221005.13
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 215
EP  - 222
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20221005.13
AB  - Although the application of IFRS 17 will generally affect the system and data required by insurance companies, the choice of measurement and models, and internal control system, discussion surrounding the standard suggests it will be an improvement on the former standard which failed to provide acceptable options to the insurance companies. Hence, this study examined the implication of IFRS 17 on the operational performance of listed insurance companies in Nigeria. Being a specific standard, a survey research design was employed in selecting at random 100 respondents with relevant profession expertise. Correlation and regression analysis were employed and applied using SPSS in explaining the implication of IFRS 17 on operational performance of the insurance companies under review, System data, internal control and measurement models were used as proxies for IFRS 17 and tailored questions developed to sample respondents’ opinion. The result of the analysis revealed that, change in system and data, and measurement models have effect on operational performance of insurance companies in Nigeria. The study therefore recommends that, insurance companies put the necessary system and structure in place to support in adoption and implementation of the standard. In addition, measurement and models must be selected to suit the nature of operations within the company. Finally, the financial reporting council of Nigeria (FRCN) should continue to ensure that the adoption and application of new standards is encouraged.
VL  - 10
IS  - 5
ER  -

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