Kathmandu. The Indian insurance regulator has retained the “compulsory reinsurance quota” for state-owned General Insurance Corporation of India (GIC Re) at 4% for the financial year 2026-27 for the fourth year.
The regulator said in a statement on Friday that the entire mandatory reinsurance quota will be kept in GIC only. In India, two other Indian reinsurers, Value Etix Reinsurance Company and Allianz Jio Reinsurance, have also started reinsurance business earlier this year, but only for state-owned companies.
The binding arrangement refers to the portion of the business that the non-life insurer must reinsure a certain portion of its total reinsurance compulsorily with the GIC re. The provision of such compulsory reinsurance was initially 20 percent and later reduced to 4 percent. In fiscal year 2023, the share of mandatory reinsurance was reduced from 5 percent to 4 percent.
