Finance Minister Reviews Public Sector Insurers' Progress

29 May 2025 CW Team

Union Finance Minister Nirmala Sitharaman chaired a review meeting of Public Sector General Insurance Companies (PSGICs) in New Delhi, stressing innovation, customer service, and digital transformation. Attendees included top officials from New India Assurance, United India Insurance, Oriental Insurance, National Insurance, and other key insurers.

PSGICs’ total premium collection rose from Rs 800 billion in 2019 to nearly Rs 1.06 trillion in 2025. Despite this, India's general insurance penetration remains low at one per cent of Gross Domestic Product, compared to the global average of 4.2 per cent.

Health insurance performance improved, with incurred claims ratios falling post-COVID—from 126 per cent in FY21 to 103 per cent in FY24 for PSGICs. Profitability has returned across the sector, with Oriental Insurance and National Insurance posting profits recently after long gaps.

Sitharaman emphasised Artificial Intelligence-driven claim systems, especially for motor and health segments, to boost efficiency. She also urged product diversification into areas like cyber fraud and highlighted the need for better customer grievance redressal, digital Know Your Customer systems, and fintech partnerships.

The insurers were asked to act swiftly on these reforms, with progress to be monitored through regular reviews.

Source:Press Information Bureau

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