Finance Minister Nirmala Sitharaman on Wednesday reviewed the key performance indicators of public sector general insurance companies (PSGICs) and directed them to develop innovative insurance products tailored to new and emerging risks.
Sitharaman asked the companies to develop such innovative insurance products tailored to new and emerging risks, including cyber fraud, and to diversify their product portfolio in line with evolving consumer needs, the finance ministry said in a statement.
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, it said.
During the meeting, Sitharaman reviewed performance indicators including premium collections, insurance penetration and density, and incurred claims ratios. It was noted that the total premium collected by PSGICs has increased from around `80,000 crore in 2019 to nearly Rs 1.06 lakh crore in 2025, the finance ministry said.
The overall general insurance industry also reported growth, with total premium collections reaching Rs 3.07 lakh crore in FY 2024–25.
The meeting was attended by financial services secretary M. Nagaraju and the managing directors of PSGICs—New India Assurance, United India Insurance, Oriental Insurance, and National Insurance, General Insurance Corporation of India (Reinsurance) and Agriculture Insurance Company of India.
While general insurance penetration in India remains relatively low at 1% of GDP — compared to a global average of 4.2% in 2023 — insurance density has steadily improved, increasing from $9 in 2019 to $25 in 2023. The minister underscored the need for PSGICs to work towards improving both penetration and density to ensure wider financial protection.
The PSGICs have witnessed a significant turnaround, with all of them having become profitable again. Oriental Insurance and National Insurance started posting quarterly profits from Q4 of 2023-24 and Q2 of 2024-25, respectively. United India Insurance posted profit in Q3 of 2024-25 after a gap of 7 years. Notably, New India Assurance has consistently maintained its position as a market leader and has been making profits regularly.