Irdai notifies Ind AS transition norms for insurers
The Insurance Regulatory and Development Authority of India has issued final regulations for the adoption of Indian Accounting Standards (Ind AS) by insurers, with effect from April 1, 2026.
The move marks a shift from the existing Indian GAAP framework to a more globally aligned accounting system, enhancing transparency and comparability in financial reporting. To ease the transition, the regulator has allowed a one-year forbearance for insurers that are not fully prepared to comply with the new standards.
Companies seeking this relief must submit their applications by April 30, 2026. The regulator will assess requests based on preparedness, transition complexity, and other relevant factors.
The transition to Ind AS is expected to significantly modernise financial reporting in the insurance sector while aligning it with global best practices.
Irdai mandates compliance check on dark pattern practices
The Insurance Regulatory and Development Authority of India has directed insurers and regulated entities to assess compliance with guidelines on “dark patterns” in digital interfaces.
Entities must conduct a self-assessment within 15 days based on guidelines issued by the Central Consumer Protection Authority, which aim to curb deceptive user interface designs that mislead consumers.
Where non-compliance is identified, companies are required to submit a corrective action plan within one month, outlining timelines for eliminating such practices. The directive aligns with broader regulatory concerns across financial sectors, with the Reserve Bank of India also flagging risks arising from manipulative digital design practices.
The move is expected to strengthen consumer protection and ensure greater transparency in digital insurance distribution.
Government approves Bharat Maritime Insurance Pool
The Union Cabinet has approved the creation of the ‘Bharat Maritime Insurance Pool’ (BMI), backed by a sovereign guarantee of Rs. 12,980 crore, to ensure uninterrupted insurance coverage for Indian maritime trade.
The pool will cover key maritime risks such as hull and machinery, cargo, protection and indemnity, and war risks. It is designed to support vessels operating across global routes, including high-risk or geopolitically volatile regions.
The initiative aims to reduce India’s dependence on international insurance providers, particularly global protection and indemnity clubs, while ensuring affordability and continuity of cover.
With increasing geopolitical uncertainties impacting shipping routes and insurance availability, the BMI pool is expected to enhance resilience in maritime trade and provide stability to insurers and exporters alike.
Irdai sets obligatory reinsurance cession at 4% for FY27
The Insurance Regulatory and Development Authority of India has notified the obligatory cession for FY2026–27, maintaining it at 4% of the sum insured on general insurance policies.
This cession will be placed with General Insurance Corporation of India, the country’s designated national reinsurer. The rule applies to all applicable policies issued during the financial year, with no upper limit on the sum insured for such cessions.
However, certain segments such as terrorism insurance and premiums ceded to nuclear pools will be exempt, with cession requirements set at nil for these categories.
The obligatory cession framework helps strengthen domestic reinsurance capacity while ensuring risk distribution within the Indian insurance ecosystem.
DFS pushes insurers for faster, frictionless claim payouts
The Department of Financial Services has urged insurers to streamline claim and maturity payouts to build stronger customer trust.
Speaking at the launch of new digital platforms by Life Insurance Corporation of India, DFS Secretary M Nagaraju highlighted that while policy onboarding is smooth, claim settlement often involves excessive scrutiny, repeated KYC checks and procedural delays. He emphasised that payouts should be as seamless as bank deposits, where maturity proceeds are credited automatically.
To support this shift, LIC has launched the ‘MyLIC’ app for customers and ‘Super Sales Saathi’ for agents, enabling end-to-end policy management. The insurer is also consolidating 113 databases into a unified data lake to leverage AI for underwriting, fraud detection and customer engagement.
IRDAI forms panel to review health insurance landscape
The Insurance Regulatory and Development Authority of India has set up a sub-committee to review the private health insurance ecosystem and improve policyholder experience.
The panel will assess key areas such as coverage, penetration, claims experience, product design and grievance redressal. It will also examine hospital networks, pricing practices, fraud control mechanisms and digital systems to enhance efficiency and value delivery.
The review aims to recommend regulatory and operational measures to expand coverage, strengthen risk pooling and improve affordability. It will also explore convergence between private and public health schemes and incorporate recommendations from industry bodies like CII.
The initiative reflects a broader push to enhance trust, innovation and accessibility in India’s health insurance sector.
IRDAI proposes Ind AS adoption from April 2026
The Insurance Regulatory and Development Authority of India has proposed implementing Indian Accounting Standards (Ind AS) for all insurers from April 1, 2026, aligning the sector with global financial reporting practices.
The framework will apply across life, general, health insurers and reinsurers, aiming to improve transparency, consistency and comparability in financial statements. The regulator noted that the move is part of its broader effort to strengthen policyholder protection and investor confidence.
To facilitate a smooth transition, IRDAI has undertaken detailed consultations with insurers, including readiness assessments and impact analysis. An exposure draft of amended regulations has been released for stakeholder feedback.
The shift to Ind AS marks a significant step toward modernising India’s insurance accounting framework in line with international standards.
