On the occasion of ET World MSME Day, Girija Subramanian, Chairman and Managing Director of The New India Assurance Co. Ltd. (NIA), discussed the critical role of her company in protecting India’s micro, small, and medium enterprises (MSMEs) through inclusive and tech-forward insurance solutions. With economic volatility, climate change, and digital transformation reshaping the business landscape, NIA is responding with innovative products to ensure MSMEs thrive.
One of the pressing concerns for MSMEs is climate risk, and NIA has launched products like Nishchit Suraksha, which offers immediate payouts based on pre-defined triggers such as rainfall thresholds and temperature spikes, without the need for traditional loss assessments. This parametric insurance provides instant cash flows, enabling seamless business continuity and better financial resilience, especially for MSMEs with limited cash reserves.
Subramanian highlighted the growing shift towards AI-driven credit rules and digital lending, but also noted the lack of awareness among MSMEs about specific insurance programs that can help them mitigate risks. To address this, NIA is exploring partnerships with credit guarantee platforms and fintechs to offer embedded insurance, which bundles insurance with working capital loans, reducing the risk of credit default.
NIA is also introducing customer information sheets, simplified policy language, and targeted awareness drives to tackle trust and awareness deficits among MSMEs. The company is tailoring products for different sub-segments within the MSME ecosystem, such as medium enterprises and women entrepreneurs, and distributing them through retail agents and partner networks.
Subramanian emphasized that 2025 is NIA’s ‘Year of SME’, with a focus on prioritizing MSME clients, especially those who have never been insured before. The company aims to increase insurance penetration, which has stagnated at around 1% for years, and create tailored underwriting models and products that match the risk profiles and scale of MSMEs.
In conclusion, the ET MSME Day fireside chat underscored the importance of insurance for small businesses, which is no longer a luxury or afterthought, but a necessity. By aligning its strategies with emerging risks, technologies, and policy reforms, NIA is helping transform India’s vibrant MSME sector into a more resilient engine of growth. As Subramanian aptly concluded, “Insurance can no longer be viewed as an optional expense. It’s a strategic investment in business continuity.”