The implementation will apply to all categories of insurers, including Life, General, Stand-Alone Health, and Reinsurers
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The Insurance Regulatory and Development Authority of India (IRDAI) has introduced the Indian Accounting Standards (Ind AS) – based Financial Reporting Framework for the Insurance Sector from April 1, 2026.
The Authority, in its 135th meeting held on Monday, has approved the Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of Insurers) (Amendment) Regulations, 2026.
These amendments mandate insurers to prepare and present financial statements in accordance with applicable Indian Accounting Standards (Ind AS), with effect from 1st April 2026.
The implementation will apply to all categories of insurers, including Life, General, Stand-Alone Health, and Reinsurers.
Aiming Consistency
The amendment approved today sets out the regulatory framework governing the recognition, measurement, presentation and disclosure of financial statements under Ind AS. The introduction of Ind AS aims to enhance consistency, transparency, and comparability in financial reporting across the insurance sector, in line with globally accepted standards.
The regulations provide for parallel reporting for a period of two years, or such period as may be specified by the authority, comprising financial statements prepared in accordance with Ind AS alongside financial information under the existing accounting framework.
“This approach is intended to enable insurers to stabilise processes and controls, while allowing stakeholders to understand and assess the impact of the new accounting framework. To facilitate a smooth transition, 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 shall continue to submit Ind AS-based financial information also to the Authority,’’ IRDAI said in a release.
Modernising Accounting
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.
The Institute of Chartered Accountants of India (ICAI) and the Institute of Actuaries of India (IAI) welcomed the adoption of Ind AS and expressed their readiness to support insurers, auditing professionals, and actuaries. These amendments represent a significant step towards modernising the insurance sector’s financial reporting framework in India.
By aligning with globally accepted accounting standards, the regulations are expected to enhance transparency, credibility, and regulatory oversight, while safeguarding policyholder interests and supporting the development of a robust and globally aligned insurance ecosystem.
Published on March 30, 2026
