A delegation comprising the Chairman of 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 IFRS17 – 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 officials 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 R. Renganathan said adding, “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.”
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.
