Impact of GIC Re Treaty Circular on The Fire Insurance Market

Abstract

Recent years have seen manifold changes in India’s financial landscape. Developments in insurance also have kept pace with the new reforms and regulations. This article focuses on the GIC Re Treaty circular and its impact on the fire insurance market.
This circular comes at a time when the fire insurance market is marred with high discounts and huge claim outflows. It discusses the GICs stipulations making it compulsory for the general insurers to adhere to the IIB identified loss-cost-rates for 8 industrial occupancies in fire portfolio, if the insurers want to keep pace with the treaty with GIC.