Irdai retains obligatory cession at 4% for FY26, third year in a row

The Insurance Regulatory and Development Authority of India (Irdai) has retained the ‘obligatory cession’ to be placed with state-owned General Insurance Corporation of India (GIC Re) at 4 per cent for FY26, marking the third financial year in a row at this level.

 

Obligatory cession is the portion of business that Indian non-life insurers must mandatorily reinsure with GIC Re.

 

“The percentage cession of the sum insured on each general insurance policy to be reinsured with the Indian reinsurer(s) shall be 4 per cent in respect of insurance attaching during the financial year beginning from April 1 to March 31,