{"id":55040,"date":"2022-01-21T14:12:42","date_gmt":"2022-01-21T08:42:42","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?page_id=55040"},"modified":"2022-09-13T18:02:50","modified_gmt":"2022-09-13T12:32:50","slug":"obligatory-cession-to-gic-re-reduced-to-4-from-fy-23-irda","status":"publish","type":"page","link":"https:\/\/enterslice.com\/learning\/whitepapers\/obligatory-cession-to-gic-re-reduced-to-4-from-fy-23-irda\/","title":{"rendered":"Obligatory cession to GIC Re reduced to 4% from FY 23: IRDA"},"content":{"rendered":"<p>IRDA has lowered the obligatory cession on each general insurance policy which has to be reinsured with GIC to 4% from the earlier 5%.<\/p>\n\n\n\n<p>The companies buy reinsurance to secure their balance sheet. In order to mitigate the risk, companies buy the obligatory reinsurance from the state-owned GIC Re, which is the national reinsurer. This act of transferring the risk to the reinsurer is called cession; in exchange of this GIC charges a premium amount.<\/p>\n\n\n\n<p>In 2020-2021 the Indian general insurance sector had a <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Market&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;A market is a structured environment, either physical or virtual, where buyers and sellers convene to trade goods and services. This trading hub operates based on the principles of supply and(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/market\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>market<\/a> size of over Rs.2 Lakh crore. It had a steady growth of about 15% every year except for the previous two years during which the industry suffered various difficulties due to Covid-19. During these pandemic years, the growth had fallen to 10 %. In the financial year 2020-2021, the Indian reinsurance market is valued at around Rs. 55,000 crores.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>IRDA has lowered the obligatory cession on each general insurance policy which has to be reinsured with GIC to 4% from the earlier 5%. The companies buy reinsurance to secure their balance sheet. In order to mitigate the risk, companies buy the obligatory reinsurance from the state-owned GIC Re, which is the national reinsurer. This [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":55041,"parent":15144,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"download-newsletter.php","meta":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>IRDA: Obligatory cession to GIC Re reduced to 4% from FY 23<\/title>\n<meta name=\"description\" content=\"IRDA has lowered the obligatory cession on each general insurance policywhich has to be reinsured with GIC to 4% from the earlier 5%.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/whitepapers\/obligatory-cession-to-gic-re-reduced-to-4-from-fy-23-irda\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"IRDA: Obligatory cession to GIC Re reduced to 4% from FY 23\" \/>\n<meta property=\"og:description\" content=\"IRDA has lowered the obligatory cession on each general insurance policywhich has to be reinsured with GIC to 4% from the earlier 5%.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/whitepapers\/obligatory-cession-to-gic-re-reduced-to-4-from-fy-23-irda\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:author\" content=\"enterslice\" \/>\n<meta property=\"article:modified_time\" content=\"2022-09-13T12:32:50+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2022\/01\/Obligatory-cession-to-GIC-Re-reduced-to-4-from-FY-23-IRDA.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"670\" \/>\n\t<meta property=\"og:image:height\" content=\"352\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/pages\/55040"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=55040"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/pages\/55040\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/pages\/15144"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/55041"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=55040"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}