The Public Sector General Insurance Companies (PSGICs) in India have made a significant turnaround in their financial performance. After years of losses, all four companies – Oriental Insurance Company, National Insurance Company, United India Insurance Company, and New India Assurance Company – have returned to profitability. This turnaround is attributed to the efforts of the government, which infused Rs. 17,450 crore into the companies between 2019-20 and 2021-22 to support reforms and enhance efficiency.
The government introduced key performance indicators (KPIs) for regular monitoring and encouraged risk management, loss control, and technology adoption, which led to a combined profit of Rs. 1,066 crore for the companies in Q3 of FY 2024-25. This is a significant improvement from the combined loss of over Rs. 10,000 crore in FY 2022-23.
The PSGICs plan to maintain their financial stability by implementing strategic measures and improving their services. They aim to offer high-quality insurance products and work towards the broader goal of “Insurance for All” by 2047. This goal is in line with the government’s vision to make insurance accessible to all citizens of India. The successful turnaround of the PSGICs is a positive development for the insurance sector and the economy as a whole. It demonstrates the benefits of government support and the importance of structural reforms in the industry.