Fire insurance rates for 291 business segments have been revised since 1 January, as GIC Re said that a host of new industries were to be covered under the annual rate revision.

When GIC Re hikes reinsurance rates, insurers which take risk cover from the former could pass the increase on to their customers. Fire insurance premiums are increased by 10-50% for most types of businesses, reported Moneycontrol.

However, for about 29 segments, there could be a slight reduction in the fire insurance premium.

In 2019, 36 segments in eight industries were mandated to be charged market rates based on past claims experiences. This year, almost all of India Inc has been included in the premium increases and discounting is barred.

Discounting has been a common practice in classes of insurance like fire insurance, where despite higher claims in the previous year, lower premiums are charged. This practice helps general insurers retain corporate clients, but hits their profitability.