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The demand for actuaries in Kenya is projected to expand following the implementation of the International Financial Reporting Standard 17 (IFRS 17), the Insurance Regulatory Authority (IRA) has said.
Titus Osero, senior manager, of actuarial services at the IRA, says the number of actuaries certified by the UK-based Institute and Faculty of Actuaries (IFoA) was approximately 70 as of July 2023.
The deadline for the adoption of IFRS 17 in Kenya was 1 January 2023. However, several small insurers are yet to conform to the new financial reporting standard. They lack the funding and the expertise or manpower to implement the standard.
There were early indications that not all insurance companies would be able to comply with the new financial reporting standard.
Implementation of IFRS 17 requires significant financial resources for IT systems and human resources. “Most internal actuarial teams in Kenya are small and, given how demanding implementation is, companies will have to hire more staff dedicated to IFRS 17. The other option – external consultants – is unaffordable for many companies,” said Ms Joan Mungai, an actuary at the IRA, in an article published last year in The Actuary, a publication of the IFOA.
She also wrote that there were revealing gaps in the past data captured by insurers, required in implementing IFRS 17. The biggest hurdle in the adoption of the new standard is the relative lack of management buy-in due to a lack of awareness of the standard and its perceived complexity.
Meddle East Insurance Review
