A comparative analysis of the factors associated to adoption of IFRS 17 and risk based supervision framework in Uganda

Abstract

The adoption of International Financial Reporting Standard 17 (IFRS 17) and Risk-Based Supervision (RBS) presents significant challenges and opportunities for the insurance industry in Uganda. This research study explores the adoption challenges of IFRS 17 and RBS in the Ugandan insurance sector, aiming to provide valuable insights for insurance companies, regulators, and policymakers. The study finds that limited availability of skilled resources is a primary challenge in both IFRS 17 and RBS adoption, with IFRS 17 facing a greater challenge due to its specialized nature and complex data requirements. To address these challenges, the research recommends enhancing skilled resources through training and development initiatives. Furthermore, the study underscores the critical role of training staff as a strategy for successful adoption of both frameworks, emphasizing its significance, especially in the context of IFRS 17 complexity and its profound impact on financial reporting. The research also identifies potential associations between academic year graduated, department at work, and adoption strategies, indicating the influence of these factors on the approach taken by insurance companies in adopting IFRS 17 and RBS. In conclusion, the study underscores the need for insurance companies to prioritize skilled resource development, training initiatives, and cross-departmental collaboration to effectively address the adoption challenges of IFRS 17 and RBS. Collaboration with regulatory authorities and a focus on data management and integration are also recommended to ensure successful implementation.