Assessment of the compliance with IRA guidelines by insurance companies in adoption with IFRS 17 in Uganda

Abstract

This dissertation investigates the compliance with Insurance Regulatory Authority (IRA) guidelines by insurance companies in adoption with IFRS 17 (accounting for insurance contracts) within the insurance sector. The research also aims at providing insight into the extent to which insurance companies align with IFRS 17 requirements with the help of IRA guidelines, shedding light on potential challenges, implications and solutions. A snowball sampling technique was employed to select a diverse range within employees under the different insurance companies whereby primary data collection was carried out through a combination of structured interviews and document analysis. The findings reveal the varying degrees of compliance among the respondents employed within insurance companies and observed some of the challenges faced while adopting to this standard e.g. Difficulty in integrating legacy systems, Lack of standardization across data sources etc. where we observed that the most effective solution to enable compliance of IRA guidelines with IFRS17 adoption is developing and sponsoring actuarial skills. In conclusion, this study contributes to the ongoing discourse on the convergence of the international accounting standard within emerging markets and the context of insurance sector and financial statements which offers valuable insights for IRA and the insurance stakeholders interested in the harmonization of financial reporting standards in the insurance industry. Based on the research outcomes, it is recommended that IRA actively promotes awareness and provides guidance to insurance firms on IFRS 17 implementation. Additionally, insurance companies should invest in training and technology infrastructure to enhance their compliance capabilities.