India insurers face accounting shake-up after IRDAI rule change
India’s insurance regulator has approved a new financial reporting framework that will require all domestic insurers to report under Indian Accounting Standards (Ind AS) from the 2026-27 financial year. At its 135th meeting on March 30, 2026, the Insurance Regulatory and Development Authority of India (IRDAI) approved amendments to the Insurance Regulatory and Development Authority of India (Actuarial, Finance, and Investment Functions of Insurers) Regulations.
Under the revised rules, life, general, standalone health insurers, and reinsurers will prepare and present financial statements under the Ind AS framework from April 1, 2026. The amendments set out requirements for recognition, measurement, presentation, and disclosure of insurance-sector financial statements under Ind AS. The framework is intended to align Indian insurance reporting more closely with globally used accounting approaches and to support more consistent and comparable financial information across market participants.
Parallel reporting and transitional relief
To manage implementation, IRDAI has included a period of parallel reporting. Insurers will be required to produce Ind AS-compliant financial statements alongside financial information prepared under the existing accounting framework for two years, or for a different period specified by the authority. The dual-reporting phase is meant to allow insurers to adjust systems, actuarial models, data processes, and internal controls, while enabling boards, investors, analysts, and policyholders to assess how the new standards affect capital, earnings, and other performance measures.
Read next: India regulator challenges insurers on costs and mis-selling
For insurers that face operational or systems constraints in moving immediately to full Ind AS financial statements, the regulations provide for a one-year forbearance period. During that time, those insurers may continue to publish financial statements under the current framework, while still submitting Ind AS-based financial information to IRDAI. According to the authority, the framework was finalised after “extensive stakeholder consultations,” including public comments on an exposure draft and engagement with insurers and industry professionals. The Institute of Chartered Accountants of India and the Institute of Actuaries of India “welcomed the adoption of Ind AS and expressed their readiness to support insurers, auditing professionals, and actuaries.”
Swiss Re forecasts strongest premium growth among major markets
The accounting change comes alongside a favourable medium-term growth forecast for India’s insurance sector. A Swiss Re Institute study, “India’s economic and insurance market outlook 2026-2030: resilient and rising amid global shifts,” projects that India will record the fastest real premium growth among major insurance markets over 2026-2030. Swiss Re expects India’s real insurance premiums to increase by an average of 6.9% per year during that period. The report compares this with a projected 3.9% for China, around 2% for the US, and 6.1% for emerging Asia excluding China. Global premiums are forecast to grow by 2.4% in real terms. The 2026-2030 projection follows an expected real premium growth rate of 3.1% in 2025, a year in which the market continues to adjust to regulatory and policy measures. Swiss Re attributes the higher medium-term projection in part to IRDAI reforms and government policies, including a higher foreign direct investment cap in insurance, changes in distribution, and Goods and Services Tax adjustments.
Read next: Latest India data finds complaints clustered in insurance segment
Life, health, and motor segments expected to support expansion
Swiss Re sees contributions from both life and non-life business. In life insurance, where India is the second-largest market among emerging economies, the reinsurer projects average annual real premium growth of 6.8% over the next five years. The report cites further expansion of distribution networks, increased demand for retirement products, and credit growth as contributing factors. In non-life, the sector faces near-term pressures from regulatory adjustments and medical inflation, but the reinsurer expects growth to improve over the medium term. Health premiums are forecast to rise by an average of 7.2% per year from 2026 to 2030, while motor premiums are projected to grow by 7.5% annually, supported by higher vehicle ownership.
Natural catastrophe risk and implications for protection
The Swiss Re analysis also points to increasing natural catastrophe exposure alongside the build-up of economic assets. The reinsurer estimates that India has about US$26 trillion to US$29 trillion of assets at risk nationwide, with some of this exposure concentrated in areas facing multiple natural perils. Large events affecting those areas could have implications for national economic performance. To manage these risks, the report notes the role of expanded re/insurance coverage and investment in risk-reduction measures such as early warning systems, climate-resilient infrastructure, and stricter enforcement of building codes, particularly in rapidly urbanising and coastal regions.
