The Association of Kenya Insurers (AKI) is set to train its members on the International Financial Reporting Standards (IFRS) -17 for insurance contracts.
This is ahead of the implementation of the new standards from January 1 2023, replacing IFRS 4 which has been in place since 2004.
The training targets CEOs, board directors and team lead in finance, ICT, risk and compliance and actuarial services.
The training which runs from November 30 to December 1 will be done in partnership with SCR Academy Re, Morocco.
IFRS 17 is the first internationally consistent financial reporting standard for insurance contracts.
Currently, IFRS 4 allows insurers to use different accounting policies to measure similar insurance contracts in different countries.
According to AKI,this accounting model is inconsistent with IFRS standards applied by other industries in the same country.
It also makes it difficult to compare insurance to other industries in particular banking and investment management.
The IFRS 17 provides consistent principles for all aspects of accounting for insurance products.
It removes existing inconsistencies and enables investors, analysts, and others to meaningfully compare companies across industries and countries.
Earlier this year, AKI carried out a survey to establish the level of preparedness of insurance companies to adopt this new standard.
Its findings showed 50 per cent readiness across the industry.
One of the key challenges was skills gap which is the association's basis for this training.
The association is also liaising with the Insurance Regulatory Authority (IRA) to develop industry guidelines that will ensure a smooth transition to this reporting standard.
The guidelines will be released before the end of the year.
In line with other jurisdictions, the transition from IFRS 4 to IFRS 17 is expected take on average of two and a half to three years.
