The Indian Public Sector General Insurance Companies (PSGICs) have experienced a significant turnaround, with all companies becoming profitable again after historically reporting losses. Oriental Insurance Company Ltd. (OICL) and National Insurance Company Ltd. (NICL) started posting quarterly profits in Q4 of FY 2023-24 and Q2 of FY 2024-25, respectively. United India Insurance Company Ltd. (UIICL) also reported a profit in Q3 of FY 2024-25, after a seven-year gap. New India Assurance Company Ltd. (NIACL) has consistently maintained its position as a market leader and has been making profits regularly.
The government’s commitment to creating strong and competitive PSGICs has been instrumental in this turnaround. The government infused a total capital of Rs. 17,450 crore into these companies between 2019-20 and 2021-22, allowing them to undertake structural reforms, enhance operational efficiencies, and return to profitability. The PSGICs have also implemented various measures, including improved risk management practices, loss control initiatives, adoption of technology, development of new products, and better customer services.
As a result, the PSGICs have posted a significant turnaround, with combined losses of over Rs. 10,000 crore in 2022-23 being replaced by a combined profit of Rs. 1,066 crore in Q3 of FY 2024-25. The companies are committed to maintaining this positive trajectory and are rolling out ongoing strategic measures and new initiatives to further strengthen their financial stability and improve customer services. The PSGICs aim to offer high-quality insurance products and services, ensuring long-term sustainability and enhancing customer experience, while achieving growth.
The broader objective of the PSGICs is to achieve “Insurance for All” by 2047, and they are committed to working towards this goal. With the government’s support and the companies’ own efforts, the PSGICs are well on their way to achieving this objective and maintaining their position as major players in the Indian insurance industry. Overall, the turnaround of the PSGICs is a significant achievement and a testament to the effectiveness of the government’s reforms and the companies’ own efforts to improve their performance.