PSU general insurers have been asked to focus on profitable business segments and reduce incurred claim ratios. The Finance Ministry has also called for stronger underwriting, digitalisation and customer service.
The direction came during a performance review meeting chaired by Department of Financial Services (DFS) Secretary Sanjay Lohiya. The meeting reviewed the financial and business performance of public sector general insurance companies for FY 2025-26.
PSU General Insurers Asked to Improve Profitability
Sanjay Lohiya advised PSU general insurers to strengthen their focus on profitable lines of business.
He also asked the companies to take suitable measures to reduce their Incurred Claim Ratio (ICR). The ratio indicates the share of premium income used to settle claims.
The review covered underwriting performance across different lines of business. It also examined key performance indicators, digital initiatives and other operational issues.
PSU General Insurers to Accelerate Digitalisation
The Finance Ministry called for greater use of technology across the state-owned insurers.
Lohiya asked the companies to accelerate digitalisation while optimising spending on information technology and other digital initiatives.
He also called for a stronger and standardised KPI framework across PSU general insurers. The framework should enable consistent and comparable assessment of financial and non-financial performance.
The KPIs should be reviewed on a quarterly basis, he said.
Insurance Outreach and Penetration in Focus
Customer outreach was another key focus of the meeting.
Lohiya asked the insurers to improve communication and publicity through social media and other platforms. The objective is to increase awareness of insurance products and expand coverage in underserved segments and regions.
The companies were also advised to improve insurance penetration and density and reduce protection gaps.
Focus on Customer Grievance Redressal
The Finance Ministry also stressed the need for faster and better resolution of customer grievances.
Lohiya asked the insurers to ensure expeditious and quality grievance redressal. Customer service standards will remain an important part of the performance assessment of PSU general insurers.
Senior Insurance Officials Attend Review
The meeting was attended by senior executives of state-owned general insurers.
Participants included NICL CMD Rajeshwari Singh Muni, UIICL CMD Bhupesh S Rahul, OICL CMD Sanjay Joshi, AICIL CMD Lavanya R Mundayur and NIACL Executive Director S Sivasankar.
From the Department of Financial Services, Additional Secretary Debasish Prusty and other senior officials also attended the meeting.
Source: PSU Watch
