Irdai endorses panel's view to cut obligatory cession to zero from 4%

The obligatory cession was reduced from 5 per cent to 4 per cent in FY23. The regulator has been reducing the obligatory cession over time

The committee that recommends the percentage of obligatory cession that general insurers have to cede to state-owned General Insurance Corporation (GIC Re) has suggested that the obligatory cession be brought down to zero from the existing 4 per cent. This is a view that has been endorsed by the Insurance Regulatory and Development Authority of India (Irdai), said its chairman Debasish Panda.

“There is a committee, which the government appoints every year to recommend this. The committee has given its recommendations and we have sent them to the government, endorsing their recommendations. The committee has said that the obligatory cession