Public and Pvt sector insurance companies would continue cede 10% of their risks to GIC

The Insurance Regulatory and Development Authority (IRDA) have stipulated that the mandatory ceding by every general insurer in the country to the national reinsurer – General Insurance Corporation (GIC), would continue to remain at 10 per cent.IRDA Chairman, Mr J. Hari Narayan, said, “The statutory share will remain at 10 per cent. There is no proposal to reduce this floor.”

Under current regulations, the domestic general insurers – both public and private sector – are expected to mandatorily cede 10 per cent of their risks to GIC.