IRDAI approves India AS framework for insurers from April 1

Insurance regulator IRDAI has approved amendments mandating insurers to prepare and present financial statements in accordance with applicable Indian Accounting Standards effective April 1, 2026.

The implementation of Ind AS will be applicable to all categories of insurers — life, general, stand alone health insurers and reinsurers. The amendment sets out the regulatory framework governing the recognition, measurement, presentation and disclosure of financial statements under Ind AS.

Introduction of Ind AS aims to enhance consistency, transparency and comparability in financial reporting across the insurance sector, in alignment with globally accepted standards, IRDAI said on Monday, announcing approval for the Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of Insurers) (Amendment) Regulations, 2026.

The regulations provide for parallel reporting for a period of two years, or as specified by IRDAI, comprising financial statements prepared in accordance with Ind AS alongside financial information under the existing accounting framework. This is intended to enable insurers to stabilise processes and controls, while allowing stakeholders to understand and assess the impact of the new accounting framework, the regulator said.

For insurers facing challenges in immediately shifting to Ind AS, a provision has been made to grant forbearance for one-year. During this period, such insurers will continue to submit Ind AS based financial information also to the Authority.

The Institute of Chartered Accountants of India (ICAI) and the Institute of Actuaries of India (IAI) have welcomed the adoption of Ind AS and expressed their readiness to support insurers, auditing professionals and actuaries. IRDAI said the framework has been developed after extensive stakeholder consultations, including consideration of public comments on the exposure draft and engagement with insurers and industry professionals.