ICMAI introduces INSCOST framework for Indian insurance sector

The Institute of Cost Accountants of India (ICMAI) has introduced the ‘INSCOST – Cost Management, Cost Governance, Cost Disclosure & Cost Assurance Framework for the Indian Insurance Sector’. This sector-specific framework is designed to enhance cost discipline, transparency, and governance within the Indian insurance industry.

As the first edition of its kind globally to cover Life, General, Health, Reinsurance, and Public-Sector insurance entities, the framework adapts established cost accounting and auditing standards to the specific economics of the insurance sector. It aligns with the regulatory architecture of the Insurance Regulatory and Development Authority of India (IRDAI).

ICMAI President Chittaranjan Chattopadhyay noted that the framework supports India’s ‘Insurance for All by 2047’ vision. The guidance covers critical areas such as cost allocation, expenses of management, claims and distribution costs, bancassurance, and strategic cost analytics.