IRDAI – Press Release on Ind AS Implementation

The Insurance Regulatory and Development Authority of India (“ IRDAI ”) has issued a Press Release on aligning India’s Insurance Financial Reporting Framework with globally accepted Standards (“ Press Release ”) along with the exposure draft of IRDAI (Actuarial, Finance and Investment Functions of Insurers) (Amendment) Regulations, 2026 (“ proposed Regulations ”) dated March 3, 2026.

Key highlights of the Press Release are as follows:

• IRDAI as part of its commitment to strengthening policyholder protection and reinforcing confidence in insurance sector, has issued the exposure draft of the IRDAI (Actuarial, Finance and Investment Functions of Insurers) (Amendment) Regulations, 2026.
• IRDAI proposes to implement Indian Accounting Standards (Ind AS) for all insurers with effect from April 1, 2026.
• The proposed effective date shall be applicable to all categories of insurers, including Life Insurers, General Insurers, Health Insurers and Re-insurers.
• The proposed amendments aim to promote greater consistency, transparency and comparability in financial reporting across the insurance sector, that aligns with the globally accepted standards, while also preserving regulatory prudence and safeguarding policyholder interests.
• The framework is developed with insurers, to include structured gap assessments and analysis of pro-forma financial submissions, to evaluate operational readiness and the impact assessment.
• The measures are intended to facilitate a smooth and orderly transition to Ind AS-based financial reporting.
• Further, IRDAI has incited public comments, including insurers, industry associations, professional bodies, actuaries, auditors and other interested entities, on the Exposure Draft.

Key highlights of the Exposure Draft are as follows:

• Indian Accounting Standards (Ind AS), converged with International Financial Reporting Standards (IFRS), aims to enhance transparency, consistency and comparability of financial statements across jurisdictions.
• Ministry of Corporate Affairs had notified Ind AS 117 (Insurance Contracts) in August, 2024 and Ind AS 109 (Financial Instruments) in February, 2015, thus, a structured transition to Ind AS for insurers has become both relevant and necessary.
• The adoption of Ind AS represents a significant step towards aligning financial reporting in the Indian insurance sector with globally accepted accounting practices.
• The regulatory framework is aligned to ensure alignment with the new accounting standards. The copy of exposure draft of the proposed Regulations is attached herewith for your reference – Annexure A.
• A Consultation Paper on the Implementation of Ind AS in the Insurance Sector in India is also released and attached herewith for your reference – Annexure B.
• The Consultation Paper outlines economic and business objectives of transition to Ind AS, industry preparedness, key policy considerations, the proposed implementation approach, transitional arrangements and the required amendments to regulations.
• Further, all stakeholders are requested to submit their comments suggestions on the proposed Regulations (Annexure A) and specific questions set out in Consultation paper (Annexure B) in the format prescribed below i.e. on or before March 24, 2026 to ifrs-team@irdai.gov.in with copy to c.latha@irdai.gov.in.

Feedback Format

A. Stakeholder Information

• Name of the Organization / Individual
• Type of Stakeholder (Insurer / Reinsurer / FRB / Industry Body / Auditor / Public / Others – please specify)

B. Suggestions on Questions (Para 13 of Consultation Paper)

C. Suggestions on Exposure draft on Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of Insurers) (Amendment) Regulations, 2026

D. Suggestions on draft Ind AS Financial Statements formats

A copy of the Press Release, Exposure Draft, proposed Regulation (Annexure A), Consultation Paper (Annexure B) is attached herewith for your ready reference.

Source category: IRDAI

Attachments

• Annexure B-Consultation Paper
• Annexure A-Draft Ind AS proposed Regulations
• Press Release on Ind AS Implementation
• Exposure draft on Ind AS Implementation