Union Finance Minister Nirmala Sitharaman chaired a review meeting of Public Sector General Insurance Companies (PSGICs) in New Delhi on Wednesday. The meeting was attended by Department of Financial Services (DFS) Secretary M. Nagaraju, Managing Directors of New India Assurance, United India Insurance, Oriental Insurance, National Insurance, General Insurance Corporation of India (Reinsurance), Agriculture Insurance Company of India Limited, and other senior officials from the Ministry of Finance.
Sitharaman reviewed key performance indicators such as premium collections, insurance penetration and density, and incurred claims ratios. Officials noted that total premium collections by PSGICs rose from approximately ₹80,000 crore in 2019 to nearly ₹1.06 lakh crore in 2025. The overall general insurance industry also showed growth, with total premiums reaching ₹3.07 lakh crore in FY 2024–25.
A five-year analysis of the health insurance segment was also presented, showing consistent premium growth across Private Insurers, Standalone Health Insurers (SAHI), and PSGICs. Incurred claims ratios, which had peaked in FY 2020–21 during the COVID-19 pandemic, have since moderated. By FY 2023–24, the ratios stood at 103% for PSGICs, 89% for private insurers, and 65% for SAHI.
All PSGICs have returned to profitability. Oriental Insurance Company Ltd. and National Insurance Company Ltd. reported quarterly profits from the fourth quarter of FY 2023–24 and the second quarter of FY 2024–25, respectively. United India Insurance Company Ltd. posted profits in the third quarter of FY 2024–25 after a gap of seven years. New India Assurance Company Ltd. has continued to post regular profits and retained its position as market leader.
The Finance Minister highlighted the need for digital transformation across all PSGICs to improve service delivery and efficiency. She stressed the use of AI-driven claim settlement systems, especially for Motor Own Damage and Health insurance products.
Sitharaman also directed the companies to design innovative insurance products addressing emerging risks such as cyber fraud, diversify their offerings, and adopt robust underwriting practices. Companies were advised to align their combined ratios with global benchmarks to maintain profitability and financial stability.
Customer service was identified as a key priority. The Finance Minister instructed PSGICs to improve grievance redressal, strengthen social media engagement, and adopt digital Know Your Customer (KYC) processes via the Account Aggregator system.
To enhance market reach, PSGICs were encouraged to explore partnerships with intermediaries, fintech, and insurtech companies to improve accessibility and deepen insurance penetration.
The Finance Minister underlined the use of data analytics and artificial intelligence for accurate pricing models and efficient claims management. PSGICs have been directed to implement these measures within defined timelines, with regular reviews planned to monitor progress.
Sitharaman reviewed key performance indicators such as premium collections, insurance penetration and density, and incurred claims ratios. Officials noted that total premium collections by PSGICs rose from approximately ₹80,000 crore in 2019 to nearly ₹1.06 lakh crore in 2025. The overall general insurance industry also showed growth, with total premiums reaching ₹3.07 lakh crore in FY 2024–25.
Insurance penetration in India remains low at 1% of GDP, compared to the global average of 4.2% in 2023. However, insurance density has increased from $9 in 2019 to $25 in 2023. The Finance Minister urged PSGICs to improve both penetration and density to enhance financial protection coverage.
A five-year analysis of the health insurance segment was also presented, showing consistent premium growth across Private Insurers, Standalone Health Insurers (SAHI), and PSGICs. Incurred claims ratios, which had peaked in FY 2020–21 during the COVID-19 pandemic, have since moderated. By FY 2023–24, the ratios stood at 103% for PSGICs, 89% for private insurers, and 65% for SAHI.
All PSGICs have returned to profitability. Oriental Insurance Company Ltd. and National Insurance Company Ltd. reported quarterly profits from the fourth quarter of FY 2023–24 and the second quarter of FY 2024–25, respectively. United India Insurance Company Ltd. posted profits in the third quarter of FY 2024–25 after a gap of seven years. New India Assurance Company Ltd. has continued to post regular profits and retained its position as market leader.
The Finance Minister highlighted the need for digital transformation across all PSGICs to improve service delivery and efficiency. She stressed the use of AI-driven claim settlement systems, especially for Motor Own Damage and Health insurance products.
Sitharaman also directed the companies to design innovative insurance products addressing emerging risks such as cyber fraud, diversify their offerings, and adopt robust underwriting practices. Companies were advised to align their combined ratios with global benchmarks to maintain profitability and financial stability.
Customer service was identified as a key priority. The Finance Minister instructed PSGICs to improve grievance redressal, strengthen social media engagement, and adopt digital Know Your Customer (KYC) processes via the Account Aggregator system.
To enhance market reach, PSGICs were encouraged to explore partnerships with intermediaries, fintech, and insurtech companies to improve accessibility and deepen insurance penetration.
The Finance Minister underlined the use of data analytics and artificial intelligence for accurate pricing models and efficient claims management. PSGICs have been directed to implement these measures within defined timelines, with regular reviews planned to monitor progress.
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