IRDAI aims to converge to IFRS model by 2025, says Chairman

IFRS are standards that state the classification of the assets and liabilities of companies operating in the insurance sector.

The Insurance Regulatory and Development Authority of India (IRDAI) plans to converge to the International Financial Reporting Standards (IFRS) model by 2025, said Debasish Panda, Chairman, IRDAI.

“IRDAI should be able to transition to risk-based capital regime and converge to the IFRS by 2025,” Panda said at National Insurance Academy's event in Mumbai on December 14.

IFRS are standards that state the classification of the assets and liabilities of companies operating in the insurance sector. These standards clarify how an insurer should classify and measure its assets and define the accounting of insurance contracts.

Panda in June 2023 said that the regulatory body will focus on ensuring efficient capital utilisation by the industry by ushering in the risk-based capital (RBC) regime, and also eventually move towards the adoption of IFRS.

Additionally, he said that IRDAI is looking at strengthening the grievance redressal system for policyholders who have complaints against insurance companies.