Factors influencing the level of preparedness to adopt IFRS 17 in insurance firms in Kenya
dc.contributor.author | Mutuku, R. M. | |
dc.date.accessioned | 2024-07-30T07:58:39Z | |
dc.date.available | 2024-07-30T07:58:39Z | |
dc.date.issued | 2024 | |
dc.description | Full - text thesis | |
dc.description.abstract | Financial reporting by insurance companies has been a challenge for a long time and the initial proposal was to have IFRS 4 provide minimal guidelines on these reporting complexities. After a long duration of stakeholder engagement, IFRS 17 came into effect in 2023 although it was approved for implementation in 2018 to assist in accounting and reporting critical issues in complex insurance contracts and features. However, in the close of the year 2023 only 14 insurance firms had fully adopted IFRS 17. The main question of the study therefore was why are insurance firms taking too long to fully adopt IFRS 17? What were the impending factors affecting the level of preparedness to adopt IFRS 17?.The drive of this study was therefore to assess factors influencing the level of preparedness to adopt IFRS 17 in insurance companies in Kenya and the specific objectives were to assess the effect of board characteristics on the level of preparedness to adopt IFRS 17, to establish the effect of financial metrics on the level of preparedness to adopt IFRS 17, to evaluate the effect of type of insurance business on the level of preparedness to adopt IFRS 17 and to establish management views on the challenges and strengths facing the level of preparedness to adopt IFRS 17 on Kenyan insurance companies. The organizational readiness for change theory and the absorptive capacity theory functioned as the study's guiding theories. The population of the study comprised of all 56 licensed insurance companies in Kenya regulated by the Insurance Regulatory Authority of Kenya. It was through structured surveys that primary data was gathered. Secondary data was taken from the Insurance Regulatory Authority’s annual published supervisory reports and insurance companies final financial statements using a data collection sheet covering the five-year period from 2018 to 2022.Panel data regression analysis, correlation analysis and descriptive statistics were used to analyze the data. Inferential results showed that taking all factors, ceteris paribus (solvency ratios, liquidity ratios, earnings ratios, profitability ratios, board size, board composition, number of females in the board, board independence and type of business) the level of preparedness to adopt IFRS 17 in insurance companies in Kenya would be 0.637. The data results analyzed also showed that the seven independent variables had a positive influence, while two had negative influence on the level of preparedness to adopt IFRS 17 in insurance companies in Kenya. Additionally, the ANOVA analysis showed a significant difference between the groups confirming that all the nine variables were fit in the regression equation. Findings also indicated that unit growths in the seven variables (solvency ratios, liquidity ratios, earnings ratios, profitability ratios, board size, board independence and female in the board) would result in a positive growth on the level of preparedness to adopt IFRS 17. On the contrary, a unit growth in board composition and type of business would result in a negative growth on the level of preparedness to adopt IFRS 17. The study recommendations will assist insurance firms in the process of full implementation and assist regulators in promoting stability without reducing size of the industry. | |
dc.identifier.citation | Mutuku, R. M. (2024). Factors influencing the level of preparedness to adopt IFRS 17 in insurance firms in Kenya [Strathmore University]. http://hdl.handle.net/11071/15515 | |
dc.identifier.uri | http://hdl.handle.net/11071/15515 | |
dc.language.iso | en | |
dc.publisher | Strathmore University | |
dc.title | Factors influencing the level of preparedness to adopt IFRS 17 in insurance firms in Kenya | |
dc.type | Thesis |
Files
Original bundle
1 - 1 of 1
Loading...
- Name:
- Factors influencing the level of preparedness to adopt IFRS 17 in insurance firms in Kenya.pdf
- Size:
- 1.17 MB
- Format:
- Adobe Portable Document Format
- Description:
- Full - text thesis
License bundle
1 - 1 of 1
Loading...
- Name:
- license.txt
- Size:
- 1.71 KB
- Format:
- Item-specific license agreed upon to submission
- Description: