The Insurance Regulatory and Development Authority of India (IRDAI) has mandated an independent validation of insurers’ preparedness for implementing Indian Accounting Standards (Ind AS), requiring an external review of governance, systems and transition processes during the first year of adoption.In a circular providing additional information and clarifications on the IRDAI (Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024, the insurance regulator said every insurer would have to obtain an independent validation of its Ind AS implementation process.The requirement will apply in FY2026-27 for insurers adopting Ind AS from that year and in FY2027-28 for insurers that have been granted regulatory forbearance.The independent validation will assess whether insurers have established a robust implementation framework, including a Board-approved strategy and roadmap, governance and accountability mechanisms, adequacy of actuarial, finance, risk and IT resources, data management practices, transition plans under Ind AS 101 and Ind AS 117, and technology readiness, the IRDAI said. The validation should be conducted on an ongoing basis throughout the first year of implementation, with the independent validator engaged from the first quarter itself to facilitate timely review and course correction.The independent validation report will have to be submitted to the insurer’s Board every quarter before completion of the audit or limited review of Ind AS financial statements. An annual report must also be filed with the regulator before publication of the audited Ind AS financial statements, the circular said.Published on July 14, 2026