Insurers plan floor for fire cover to avoid large burns

Non-life insurers are considering a minimum rate for fire insurance's natural catastrophe component. This move follows concerns about steep discounts exposing the industry and reinsurers to losses. The Insurance Regulatory and Development Authority of India chairman also expressed worries about insurer financial health. Aggressive pricing and recent fire losses in Gujarat have fueled these discussions. Insurers aim to restrict discounts to the flexible fire rate component.

This story was originally reported by Economic Times — Markets. As an automated real-time news aggregator, NewsToolBar provides multi-perspective indexing and AI summarization while directing full readership directly to primary publisher sources.