The insurers that have been granted forbearance and are scheduled to implement Ind AS from FY 2027-28 are being closely monitored by IRDAI as per their board approved monthly implementation milestones. The IRDAI is engaging with insurers on an ongoing basis, with any challenges or delays in implementation being discussed with the insurers and appropriate sensitisation being undertaken to ensure that implementation remains on track for FY 2027-28.
Hyderabad: Out of almost 75 players in the Indian insurance industry, only 11 re/insurers have implemented Indian Accounting Standards (Ind AS) from FY 2026-27, said regulator IRDAI on Wednesday.
Earlier, the IRDAI had asked the Indian re/insurers to adopt IndAS since Apr1 but can ask for forbearance if they are uanable to implement the new accounting system.
Among these insurers, SBI General Insurance, Niva Bupa Health Insurance and Star Health and Allied Insurance have already submitted their financial numbers for the first quarter of FY 2026-27, under Ind AS, marking an important milestone in the transition and demonstrating the industry’s progress towards reporting under the new accounting framework, the IRDAI said.
Other insurers who have implemented the new accounting system are- Acko Life Insurance Limited,Tata AIA Life Insurance, Acko General Insurance,Kiwi General Insurance, SBI General Insurance,ECGC.
Among the health insurers,Aditya Birla Health Insurance,Niva Bupa Health Insurance,Star Health and Allied Insurance and Galaxy Health Insurance have switched to the new accounting system.
XL Insurance Company SE, India Reinsurance Branch (Axa XL) is the sole reinsurer out of 12 foreign reinsurance branches(FRBs) which has beocome Ind AS compliant.
The insurers that have been granted forbearance and are scheduled to implement Ind AS from FY 2027-28 are being closely monitored by IRDAI as per their Board Approved monthly implementation milestones. The IRDAI is engaging with insurers on an ongoing basis, with any challenges or delays in implementation being discussed with the insurers and appropriate sensitisation being undertaken to ensure that implementation remains on track for FY 2027-28, clarified the IRDAI.
The move aims to align financial reporting for insurers with global best practices under International Financial Reporting Standards (IFRS).
Insurers now follow a regulatory accounting framework prescribed under the Insurance Act, 1938, and Irdai regulations, even as most listed companies and large non-banking financial companies have migrated to Ind AS.
Irdai said adopting Ind AS was expected to enhance transparency and global comparability, increasing the attractiveness of Indian insurers to foreign investors and facilitating access to international capital markets.
The adoption of Ind AS is expected to strengthen financial reporting and governance in the insurance sector and provide stakeholders with more transparent and meaningful information on financial performance and position. IRDAI recognises that implementation is a significant exercise requiring close coordination across finance, actuarial, investment,
technology and other functions of insurers, the regulator explained.
“We will continue to work closely with the industry and leverage the Joint Expert Group comprising IRDAI, NFRA, SEBI, ICAI and IAI to address emerging issues and facilitate consistent implementation. We remain committed to working closely with the
industry throughout the transition, providing necessary clarifications and capacity-building initiatives to enable a smooth and robust adoption of Ind AS across the insurance sector,” .affirmed the insurance regulator.