Finance Minister Nirmala Sitharaman held a meeting with public sector general insurance companies to discuss their performance and future strategies. The meeting was attended by top officials, including Financial Services Secretary M Nagaraju. Sitharaman emphasized the importance of innovation and diversification in the insurance sector, citing the need for products that address emerging risks such as cyber fraud.
The Minister encouraged the insurers to develop new products and services that cater to evolving consumer demands. She also stressed the need for robust underwriting, better portfolio optimization, and improved combined ratios to ensure long-term financial sustainability. Sitharaman suggested that insurers leverage data analytics and artificial intelligence (AI) to develop precise pricing and claims models, which would enable better risk assessment.
Sitharaman also highlighted the need to increase insurance penetration and density in India. Currently, insurance penetration in the country stands at 1% of GDP, which is significantly lower than the global average of 4.2%. However, there has been a notable improvement in insurance density, which has increased from $9 in 2019 to $25 in 2023. The Minister urged the insurers to step up their adoption of digital tools to improve their services and reach a wider audience.
The meeting was attended by representatives from six public sector general insurance companies, including New India Assurance, United India Insurance, and National Insurance. The Minister’s emphasis on innovation, diversification, and digitalization is expected to drive growth and improvement in the insurance sector. By developing new products and services, improving risk assessment, and increasing penetration and density, the public sector general insurance companies can better serve the evolving needs of consumers and contribute to the overall growth of the economy.
Overall, the meeting highlighted the government’s focus on promoting the growth and development of the insurance sector, and the need for public sector general insurance companies to adapt to changing market conditions and consumer demands. By leveraging technology and innovation, these companies can improve their services, increase their reach, and contribute to the overall growth of the economy.