← Policy & Regulation: Financial & market regulation (all topics)
Ind AS 117
What it is
The Indian equivalent of IFRS 17, replacing Ind AS 104 for insurance contracts. It requires liabilities to be measured at current estimates of future cash flows with an explicit risk adjustment, and profit released as service is delivered through a contractual service margin
IRDAI notified implementation from Apr 2026 with two years of parallel reporting alongside existing standards
Impact on industries
- Replaces premium-based revenue with a measure of service actually delivered, making insurers comparable with each other and with global peers for the first time
- The contractual service margin makes the stock of unearned future profit visible on the balance sheet, which embedded value disclosures only approximated
- Implementation is severe - actuarial systems, data and disclosures need rebuilding, readiness is questioned, and parallel reporting doubles the workload
- Reported profit changes without the economics changing, so historical comparisons break and frameworks built on premium growth need rebasing