The Insurance Regulatory and Development Authority of India (“ IRDAI ” / “ Authority ”), vide its press release dated June 05, 2026 (“ Press Release ”), informed about the organisation of a Workshop on Implementation of Indian Accounting Standards (Ind AS) for Insurance Sector, in collaboration with the Institute of Chartered Accountants of India (ICAI) and the Institute of Actuaries of India (IAI), to facilitate a smooth transition to Indian Accounting Standards (Ind AS) in the insurance sector.
The key highlights of the Press Release are as follows:
- Given the recent notification of introduction of IRDAI (Actuarial, Finance and Investment Functions of Insurers) (Amendment) Regulations, 2026, mandating the preparation and presentation of financial statements by insurers in accordance with applicable Ind AS with effect from April 01, 2026, the workshop brought together the Chief Financial Officers (CFOs) and Appointed Actuaries (AAs) from insurance companies.
- The Workshop was held in two sessions, where the life insurers attended the morning session while the general insurers, health insurers and reinsurers attended the afternoon session.
- During inauguration session, Shri Ajay Seth, Chairman, IRDAI, highlighted that the adoption of Ind AS represents a major milestone in the evolution of financial reporting in the insurance sector, emphasizing that Ind AS has transformative potential to significantly improve transparency and strengthen governance standards across the industry.
- He also noted that the new framework would facilitate more efficient utilisation of capital by insurers and advised insurers to adhere closely to the monthly implementation roadmap to ensure a smooth transition.
- The Chairman noted the importance of stronger collaboration between finance and actuarial functions within organisations encouraging the insurers to make active use of the Joint Expert Group on Ind AS comprising IRDAI, ICAI, IAI, NFRA, and SEBI for guidance and resolution of implementation-related challenges during the transition.
- The technical sessions underscored the collaborative approach being adopted across the insurance sector to ensure preparedness for implementation. IRDAI officials presented an overview of the regulatory framework along with key requirements for implementation.
- Experts from ICAI discussed the accounting and auditing implications arising from the adoption of Ind AS. Specialists from IAI covered the actuarial aspects, including valuation techniques and the critical interaction between actuarial and finance functions. Both ICAI and IAI highlighted their joint efforts in developing guidance notes, training programmes, and educational resources to support the transition.
- In concluding remarks, Shri Rajay Kumar Sinha, Member (Finance & Investment), IRDAI, pointed out that Ind AS is expected to bring enhanced transparency, improved financial reporting and greater stakeholder confidence in the insurance sector. He highlighted the need for continuous capacity building and strengthening internal capabilities as insurers progress through the transition and appreciated the active participation of CFOs and AAs in the workshop and acknowledged the consistent support extended by ICAI and IAI in enhancing the sector’s readiness for Ind AS implementation.
- The workshop is part of a broader initiative of IRDAI to enable a smooth transition to Ind AS across the insurance industry with an objective to promote uniform and consistent implementation of the new accounting framework.
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