Union Minister for Finance Nirmala Sitharaman chaired a review meeting of Public Sector General Insurance Companies, PSGICs in New Delhi yesterday. During the meeting, she reviewed key performance indicators including premium collections, insurance penetration and density, and incurred claims ratios. It was noted that the total premium collected by PSGICs has witnessed a notable rise from around 80 thousand crore rupees in 2019 to over one lakh crore rupees in 2025. The overall general insurance industry also reported growth, with total premium collections reaching over three lakh crore rupees in 2024-25. During the review, the Union Finance Minister emphasized the urgent need for digital transformation across all PSGICs to improve service delivery and efficiency. This includes the adoption of AI-driven claim settlement systems, particularly for Motor Own Damage and Health insurance products, to ensure faster and more accurate claim resolution.
Mrs. Sitharaman also directed the companies to develop innovative insurance products tailored to new and emerging risks, including cyber fraud, and to diversify their product portfolio in line with evolving consumer needs. She also directed the public sector insurance companies to promptly address customer grievances, strengthen social media engagement, and ensure seamless integration with the Account Aggregator system. These measures are designed to simplify onboarding and improve the customer experience.
During the meeting, the importance of robust underwriting practices and portfolio optimisation was also highlighted, with instructions to align combined ratios with global industry benchmarks to safeguard profitability and financial stability.
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