New Delhi, Sep 3: The government has asked public sector general insurance companies to improve their financial performance while making customer service and grievance redressal a stronger priority.
The directions were given during a review meeting chaired by Sanjay Lohiya, Secretary in the Department of Financial Services, where the performance of government-owned general insurers for 2025-26 was assessed.
The four companies reviewed were National Insurance Company, United India Insurance Company, Oriental Insurance Company and Agriculture Insurance Company of India.
The insurers were advised to focus more on profitable areas of business and take steps to reduce their incurred claim ratio. The government also stressed the need for better use of technology and faster digitalisation while keeping technology-related spending efficient.
Improving customer experience was another key focus of the meeting. The companies were asked to resolve customer complaints more quickly and ensure that the quality of the solutions provided is also improved.
The government also called for stronger communication and wider customer outreach through social media and other platforms. The aim is to increase awareness about insurance products and reach people in underserved regions and segments.
The insurers were further advised to expand insurance coverage, improve insurance penetration and density, and reduce the gap between the protection people need and the coverage available to them.
To improve accountability, the government has also stressed the need for a common performance-monitoring system based on standardised key performance indicators. These indicators will cover both financial and operational performance and are expected to be reviewed every quarter.
The latest directions underline the government’s focus on making public sector insurers financially stronger while ensuring that customers receive faster, better and more reliable services.