Insurance firms hike rates after GIC Re changes policy on fire risk pricing

Insurance rates for vast swathes of Indian industry have begun to rise after languishing at historic lows for several years. The turnaround began in April after India’s leading reinsurance company, GIC Re, refused to entertain business from general insurers in cases where they have quoted rock-bottom rates.

Now, insurance companies will not be able to buy reinsurance cover for their underwriting unless they follow responsible practices. Under Indian insurance rules, domestic insurers have to make the first offer of reinsurance to government-run 

GIC Re. So, if GIC Re is of the view that the companies have failed to price their