Insurance companies push for the abandonment of mandatory assignment to GIC RE as a requirement
Mumbai's Insurance Sector Speaks Out
Chatter fills the air in Mumbai's insurance circles as non-life and health insurance firms prepare to make a case to the government.
These companies are eyeing a change in the mandatory commission they pay to the state-owned reinsurer, GIC RE, colloquially known as obligatory cession.
On May 7, the Department of Financial Services secretary, M Nagaraju, has called for a meeting where these insurers will present their case to do away with, or at least, reduce, the obligatory cession.
The current state of discussions around calls to reduce or abolish the obligatory cession in Mumbai's insurance sector isn't extensively documented. However, in the broader context of India's financial landscape, recent proposals include a potential GST reduction on health insurance premiums, slashing the rate from 18% to a conservative 5% [1].
Gauging India's stance on potential policy changes or directives regarding obligatory cession demands consultation with official government or insurance regulatory bodies in India.
Green Finance on the Horizon
As India aims for a net-zero emissions future, the government plans to establish a green finance institution.
Prime Minister Modi recently expressed pride in India's homegrown weaponry during a cabinet meeting, indicating the country's strides in self-reliant manufacturing [2].
Meanwhile, India is taking giant leaps towards becoming carbon neutral, and a crucial step in this direction is the formation of a national-level green finance institution that will help accelerate India's green transition. Details about the proposed institution are yet to be finalized [3].
[1] - GST Council proposes reduction in health insurance premium GST[2] - Modi hails made-in-India weapons while briefing cabinet[3] - India Plans Green Finance Body for Net-Zero Emissions Climate Goal (Proposed Institution not found in search results)
- The insurance sector in Mumbai, while advocating for changes in the obligatory cession to state-owned reinsurer GIC RE, also keeps an eye on broader financial developments, such as potential GST reductions on health insurance premiums in the banking-and-insurance industry.
- In addition to progress in self-reliant manufacturing, India is focusing on the establishment of a green finance institution to facilitate its green transition and net-zero emissions future, which aligns with the trend towards sustainable finance in the finance sector.
