ICICI Prudential, HDFC Life Insurance opt for higher retention on books

An increase in retention limit means the insurer increases the degree of risk it retains on its balance sheet

Two of the largest private-sector life insurers, HDFC Life Insurance Company (HDFC Life) and ICICI Prudential Life Insurance (ICICI Pru Life), have raised their threshold for retention of risk on retail protection plans on their balance sheet, thus bringing down the overall retail protection sum assured that is reinsured.

For ICICI Pru Life, the earlier retail protection policies with sum assured above Rs 20 lakh were reinsured and now the management has upwardly revised this limit to Rs 1 crore. For HDFC Life, the limit has been revised from Rs 20 lakh to Rs 40 lakh.

Consequently, the overall retail