IRDAI sets up working groups on risk-based capital convergence
In short
IRDAI has formed working groups to move its risk-based capital framework closer to IndAS. The starting point will be IndAS statements, with clear and evidence-based adjustments.
This matters for insurers because it can shape how much capital they must hold and how they report it.
What the reporting says
IRDAI has formed working groups to advance convergence of the risk-based capital framework with IndAS, according to the reported industry update. IndAS statements will be the starting point and basis for RBC, with clearly defined, transparent and evidence-based adjustments. The move signals a supervisory step toward aligning insurance capital rules with accounting standards, affecting insurers and their capital planning.
Why it matters
IRDAI has formed working groups to push convergence between its risk-based capital framework and IndAS. The reported guidance says IndAS statements will be the starting point, with adjustments that are clearly defined, transparent and evidence-based. The change is relevant for insurers because it can influence capital requirements, reporting, and supervisory compliance once the framework is developed further.