Reinsurance cession rate cut in India

The Insurance Regulatory Authority of India IRDAI has lowered the mandatory reinsurance cession rate in India. The percentage went from 5% in the year 2021-2022 to 4% in 2022-2023.

This rate does not affect insurance policies that cover terrorism and nuclear risks, for they are covered by specific pools.

According to IRDAI, the mandatory cession on each contract with a local insurer must be made only with the General Insurance Corporation of India (GIC Re).