Public Sector General Insurance Companies (PSGICs) have been advised to improve insurance penetration and density, reduce protection gaps and strengthen customer grievance redressal.
Secretary, Department of Financial Services (DFS), Ministry of Finance, Sanjay Lohiya chaired a performance review meeting with the PSGICs on September 2, 2026.
The meeting reviewed the financial and business performance of the companies for FY 2025-26, including underwriting performance across Lines of Business, Key Performance Indicators (KPIs), digital initiatives and other operational matters.
Public Sector General Insurance Companies Asked to Improve Profitability
Sanjay Lohiya advised the Public Sector General Insurance Companies to strengthen their focus on profitable lines of business.
He also called for suitable measures to reduce the Incurred Claim Ratio (ICR). Greater use of technology and faster digitalisation were also emphasised, along with the need to optimise expenditure on information technology and other digital initiatives.
PSGICs Told to Expand Customer Outreach
The Secretary emphasised stronger communication, publicity and customer outreach by the Public Sector General Insurance Companies.
He advised the companies to use social media and other platforms to increase awareness about insurance products. The companies were also asked to expand their reach among underserved segments and areas.
Insurance Penetration and Protection Gaps in Focus
The meeting also focused on improving insurance penetration and insurance density across the country.
The Secretary advised PSGICs to take measures to reduce protection gaps and expand insurance coverage. He also called for stronger performance monitoring through a robust and standardised KPI framework.
The KPIs should enable consistent and comparable assessment of financial and non-financial performance across the companies. The framework should also be reviewed on a quarterly basis.
Focus on Faster Grievance Redressal
Sanjay Lohiya directed the Public Sector General Insurance Companies to ensure the expeditious redressal of customer grievances.
He also stressed that companies should focus not only on the speed of grievance resolution but also on the quality of redressal.
The meeting was attended by senior officials and CMDs of NICL, UIICL, OICL and AICIL, along with senior officials from NIACL. From DFS, Additional Secretary Dr. Debasish Prusty and other senior officers also participated.
Source: PIB
