Mumbai: The Insurance Regulatory and Development Authority of India (Irdai) has retained the obligatory cession rate at 4% for FY27, directing all general insurers to place this share of each policy exclusively with state-run General Insurance Corporation of India (GIC Re). The move ensures GIC Re remains the anchor of India’s ₹50,000-crore reinsurance ecosystem. However, the regulatory fiat has stirred debate in a market that is seeing new domestic players.
The stipulation that only GIC Re can receive obligatory cessions has raised eyebrows, particularly as Jio-Allianz Re, a joint venture between Jio Financial and Allianz Group, and Valueattics Re, backed by Fairfax’s Prem Watsa and Kamesh Goyal’s Oben Ventures, have entered the fray. Together, these entrants are expected to challenge GIC Re’s dominance in the country’s reinsurance business.
