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The Department of Financial Services (DFS) continues to closely monitor the health and direction of India’s public sector insurance ecosystem. In this context, a high-level review meeting was chaired by the Secretary, DFS, Shri M. Nagaraju, on 13 January 2026, focusing on the financial and business performance of Public Sector Insurance Companies (PSICs).

The review covered FY 2024–25 and the first half of FY 2025–26, with a strong emphasis on profitability, digital transformation, and customer-centric reforms.

Key Insurance Companies Reviewed

The meeting brought together leadership from all major public sector insurers, including:

• Life Insurance Corporation of India (LIC)

• General Insurance Corporation of India (GIC)

• New India Assurance Co. Ltd. (NIACL)

• National Insurance Co. Ltd. (NICL)

• United India Insurance Co. Ltd. (UIICL)

• Oriental Insurance Co. Ltd. (OICL)

• Agriculture Insurance Company of India Ltd. (AICIL)

Focus on Profitable Growth and Risk Management

During the review, the DFS Secretary emphasised the need for PSICs to increase profitable business while maintaining their market share. He urged insurers to adopt focused strategies to reduce loss ratios, particularly in high-risk portfolios, and to continuously strengthen their retail insurance segments.

Another key direction was the development of new and customised insurance products, especially to cater to the younger generation and to address emerging risks in a rapidly changing economic and technological environment.

Digitalisation and Customer-Centric Reforms

A major highlight of the discussion was the push towards complete digitalisation. The Secretary stressed the importance of leveraging technology to achieve 100% digital onboarding for retail insurance products, ensuring faster, smoother, and more transparent customer experiences.

He also highlighted the role of communication and outreach, encouraging PSICs to improve brand visibility through digital platforms and social media to better connect with today’s customers.

Recognition of Key Achievements

The Secretary appreciated the efforts of LIC, particularly its steady progress towards improved profitability and the successful expansion of the Bima Sakhi initiative, which has played a vital role in strengthening insurance penetration in rural and semi-urban areas.

AICIL was also commended for achieving a significant milestone by crossing ₹10,000 crore in premium collection during the year.

Priority on Grievance Redressal and Claims Settlement

Reinforcing the importance of trust in insurance, the Secretary clearly stated that timely resolution of public grievances and seamless, prompt claims processing must remain a top priority. Efficient claims settlement, he noted, is central to delivering quality service and enhancing customer confidence in public sector insurers.

Participants at the Meeting

The meeting was attended by senior leadership from across the sector, including:

• Mr. R. Doraiswamy, CEO & MD, LIC

• Ms. Girija Subramanian, CMD, NIACL

• Ms. Rajeshwari Singh Muni, CMD, NICL

• Mr. B. S. Rahul, CMD, UIICL

• Mr. Sanjay Joshi, CMD, OICL

• Dr. Lavanya R. Mundayur, CMD, AICIL

• Mr. Hitesh Joshi, ED, GIC

Closing Thoughts

The review reflects the government’s continued focus on making public sector insurance companies financially strong, digitally advanced, and customer-first. With sustained emphasis on innovation, technology, and service quality, PSICs are expected to play a crucial role in expanding insurance coverage and strengthening financial security across India.