New Delhi: The Finance Ministry on Wednesday asked public sector general insurance companies to strengthen their focus on profitable lines of business and adopt suitable measures to bring down the incurred claim ratio.During the performance review meeting held here, Department of Financial Services Secretary Sanjay Lohiya asked public sector general insurance companies (PSGICs) for greater use of technology and accelerated digitalisation while optimising expenditure on information technology and other digital initiatives.Read more: Nirmala Sitharaman, IMF chief discuss India’s growth trajectory, global economic outlookThe secretary further emphasised the need to improve communication, publicity and customer outreach, including through social media and other platforms, to enhance awareness about various insurance products and the outreach of the PSGICs in underserved segments and areas.Lohiya also advised the companies to improve insurance penetration and density while reducing protection gaps.He further stressed the need to strengthen performance monitoring through a robust and standardised KPI framework across PSGICs, the ministry said in a statement.Read more: Nirmala Sitharaman pushes trade, investment ties in G20 meetings with key partnersHe advised that the KPIs should enable consistent and comparable assessment of financial, as well as non-financial performance across companies and should be reviewed on a quarterly basis.The DFS secretary also advised PSGICs to ensure expeditious and quality redressal of customer grievances.During the meeting, the secretary reviewed the financial and business performance of the PSGICs for FY2025-26, covering underwriting performance across all Lines of Business (LoBs), Key Performance Indicators (KPIs), digital initiatives and other operational issues.The meeting was attended by Rajeshwari Singh Muni, CMD (NICL), Bhupesh S Rahul, CMD (UIICL), Sanjay Joshi, CMD (OICL), Lavanya R Mundayur, CMD (AICIL), S Sivasankar, ED (NIACL) and other senior officials from PSGICs, the statement said.From DFS, the meeting was attended by Debasish Prusty, Additional Secretary, and other senior officers of the department, it added.
Finance Ministry asks state-owned general insurers to focus on profitable lines of business
Public sector insurers must focus on profitable business lines and lower incurred claim ratios. Greater technology use and digitalisation are encouraged for operational efficiency. Improved customer outreach and social media engagement will enhance product awareness. Companies should increase insurance penetration and reduce protection gaps. Performance monitoring will be strengthened through a standardised KPI framework.
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