Regulator warns insurers against deep discounts on fire risk cover

IRDAI has warned general insurers against steep discounting on fire risk cover, noting reports of discounts up to 99% from base rates. Fire insurance premiums fell sharply to around Rs 8,087 crore in Q1 of this fiscal from Rs 11,206 crore a year ago, after a strong Rs 27,432 crore in FY26. The regulator said pricing for large industrial and commercial fire risks must be based on sound actuarial principles, as unsustainable premium levels threaten claims settlement capacity.