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, the 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 Mr 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 Mr Poshak Raj Paudel, President of the Life Insurance Association of Nepal and CEO of Citizen Life Insurance Co. Ltd., Nepal.
“We, as part of the regulatory body - the Nepal Insurance Association (NIA) are willing to provide necessary support and not just regulate the industry but work as a facilitator for the companies, said Mr Surya Prasad Silwal, Chairman of Nepal Insurance Authority.
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.
Adjudged Sri Lanka’s Brand of the Year for the second successive year in 2023, Ceylinco Life was also named one of the 10 Most Admired Companies in Sri Lanka in 2023 by the International Chamber of Commerce Sri Lanka (ICCSL) and the Chartered Institute of Management Accountants (CIMA) and was ranked the ‘Most Valuable Insurance Brand in Sri Lanka’ across both life and general insurance categories in 2023 by Brand Finance.
Ceylinco Life has been the country’s leading life insurer for 20 of the 36 years it has been in existence and provides innovative life insurance solutions which offer protection while de-risking the goals and ambitions of the Company’s policyholders.
Photo Caption Members of the delegation from Nepal with the senior management of Ceylinco Life.