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GIC faces possible regulatory risk as obligatory business share falls
Obligatory business made up 33% of GIC’s domestic gross premium income in Q1FY27, down from 39% a year earlier, leaving a key revenue source exposed to potential IRDAI rule changes.
GIC, General Insurance Corp. of India, saw its stock down nearly 7% in 2026 so far, even as the company’s domestic underwriting picture stayed relatively supportive in the June quarter (Q1FY27), according to an analysis highlighted by LiveMint Markets. The write-up says GIC’s net earned premium (NEP) was flat year-on-year at ₹ 11,081 crore, but it points to stronger underlying momentum when looking at premium income and underwriting outcomes. A key focus is “obligatory business,” a regulatory cession that requires general insurers to cede 4% of their business to GIC based on sum insured, distinct from GIC’s right of first refusal. In Q1FY27, obligatory business accounted for 33% of GIC’s domestic gross premium income, down from 39% a year ago. The outlet notes that while the share remains substantial, it could be at risk if Insurance Regulatory and Development Authority of India, IRDAI, changes the related regulations. The analysis also flags competition and mix shifts. It says GIC’s domestic gross premium grew 12% year-on-year, while overall growth was 9% as international business declined to 17% of total gross premium from 19% a year earlier. Fire insurance gross premium fell 10% year-on-year to ₹ 3,225 crore, while retail health insurance rose 37% to ₹ 3,408 crore, as the firm tracked broader industry dynamics and a 290-basis-point year-on-year increase in its commission payout ratio to 18.8% in Q1FY27.