Insurance regulator IRDAI has approved amendments requiring insurers to prepare and present financial statements in line with applicable Indian Accounting Standards (Ind AS) from 1 April 2026. The rule will apply to all insurers, including life insurers, general insurers, standalone health insurers and reinsurers. The move is aimed at improving consistency, transparency and comparability in financial reporting across the insurance sector.
New Accounting Framework
The amended regulations set out the framework for recognition, measurement, presentation and disclosure of insurance financial statements under Ind AS. This brings the sector closer to globally accepted accounting practices. The change is expected to improve the quality of financial information available to regulators, investors and policyholders.
Parallel Reporting Requirement
IRDAI has provided for parallel reporting for two years, or for a period specified by the regulator. During this phase, insurers will prepare financial statements under Ind AS as well as financial information under the existing accounting framework. This is intended to help insurers stabilise systems, processes and internal controls before full transition.
Forbearance for Transition Challenges
For insurers facing difficulty in immediate implementation, IRDAI has allowed a one-year forbearance. During this period, such insurers will continue to submit Ind AS-based financial information to the Authority. The provision is meant to support a smoother shift while maintaining regulatory oversight.
Stakeholder Consultation and Sector Impact
The framework was developed after consultations with stakeholders, including public comments on the exposure draft and discussions with insurers and industry professionals. The Institute of Chartered Accountants of India and the Institute of Actuaries of India have welcomed the move and said they are ready to support insurers, auditors and actuaries during implementation.
Last Modified: April 28, 2026