India’s insurance regulator, Insurance Regulatory and Development Authority of India, has approved a major revamp of financial reporting norms, with a new accounting framework coming into effect from April 1, 2026.
The regulator has introduced an Indian Accounting Standards (Ind AS)-based system, making it mandatory for insurers to prepare and present financial statements under these norms. The framework will apply to life, general, standalone health insurers, and reinsurers.
The change has been implemented under the amended “Actuarial, Finance and Investment Functions of Insurers Regulations, 2026,” aimed at modernising financial reporting across the sector.
Until now, insurers followed legacy accounting practices. The shift to Ind AS is expected to align reporting more closely with global standards, enhancing transparency, consistency, and comparability.
Under the new framework, insurers will follow updated guidelines for recognising, measuring, presenting, and disclosing financial data. This is expected to provide investors and regulators with a clearer understanding of financial performance and risk exposure.
To support a smooth transition, IRDAI has introduced a parallel reporting mechanism for up to 2 years. During this phase, insurers will prepare financial statements under both the existing system and the new Ind AS framework.
Additionally, companies facing implementation challenges may receive a 1-year forbearance, allowing extra time to fully transition while continuing to submit Ind AS-based data.
The reform follows extensive consultations with industry stakeholders, including insurers and professional bodies in accounting and actuarial domains.
The move is expected to strengthen governance standards, improve disclosures, and align India’s insurance sector with international financial reporting practices.
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