The insurance sector is expected to transition to the risk-based capital (RBC) regime and the Ind-AS accounting standard by 2025, which will help the sector align with global standards under International Financial Reporting Standards (IFRS), IRDAI Chairman Debasish Panda said.
“Efforts are now being directed towards adopting the risk-based capital regime which will bring about efficient utilisation of capital and align with the global standards of accounting and reporting by implementing the Ind-AS which is the converged IFRS,” Panda said at a seminar by National Insurance Academy (NIA).
“Dedicated mission mode teams are working at full throttle in this direction and we expect we should be able to transition to the RBC regime as well as converge with IFRS by 2025,” he said.
The regulator is also working to “revamp” the framework for insurance investments, thus paving the way for more opportunities and better returns such as through investments in fund of funds (FoF) of alternative investment funds (AIFs) and REITs and InvITs. Further, acknowledging the role of technology in insurance, IRDAI has set up a dedicated insurtech mission team which is working on technology initiatives for the sector.
