Mumbai: The Insurance Regulatory and Development Authority of India (IRDAI), has released a consultation paper proposing the mandatory adoption of Indian Accounting Standards (Ind AS) for all insurers effective April 1, 2026.
The move would bring life insurers, general insurers, health insurers, and reinsurers under a globally aligned financial reporting framework converged with International Financial Reporting Standards (IFRS).
The current insurance accounting framework uses actuarial based liability measurement and an incurred loss model for investments. The new standards introduce market-consistent liability valuation, expected credit loss methodology, and different underwriting performance from investment returns, which are practices already adopted across the European Union, Australia, Canada, Singapore, and several Gulf nations since January 2023.
IRDAI has been preparing the sector since 2022 through mandatory gap assessments, training programmes, and phased submission of Ind AS-compliant proforma financial statements. Most major insurers have already submitted proforma statements for FY 2023–24 and FY 2024–25.
Stakeholders have until March 24, 2026 to submit feedback to IRDAI.
The move would bring life insurers, general insurers, health insurers, and reinsurers under a globally aligned financial reporting framework converged with International Financial Reporting Standards (IFRS).
The current insurance accounting framework uses actuarial based liability measurement and an incurred loss model for investments. The new standards introduce market-consistent liability valuation, expected credit loss methodology, and different underwriting performance from investment returns, which are practices already adopted across the European Union, Australia, Canada, Singapore, and several Gulf nations since January 2023.
IRDAI has been preparing the sector since 2022 through mandatory gap assessments, training programmes, and phased submission of Ind AS-compliant proforma financial statements. Most major insurers have already submitted proforma statements for FY 2023–24 and FY 2024–25.
Stakeholders have until March 24, 2026 to submit feedback to IRDAI.
