Insurance Regulatory and Development Authority (IRDAI) has maintained a status quo on the obligatory cession of 5 percent to GIC Re. Obligatory cession is the part of the business that general insurers have to mandatorily cede to the national reinsurer.

IRDAI has also maintained the commission rates to be paid to insurers by GIC Re. Commission rates are computed as a percentage of obligatory cession.

CNBC-TV18’s Yash Jain gets more details on what this means for the insurers.

Watch the video for more.

(Edited by : Niral Sharma)

First Published:Jan 4, 2021 3:05 PM IST