Summary of this article
Public insurers urged to boost investments, cut loss ratios
Focus on semi-urban, rural expansion and retail portfolios
Digital adoption, innovation key for growth and efficiency
Public sector general insurance companies should focus on increasing investment opportunities and devise strategies to reduce loss ratios, while maintaining market share and consistently strengthening their retail portfolios and presence across rural and semi-urban areas, Financial Services Secretary M Nagaraju said on Wednesday.
He said while reviewing the Vision Strategy documents of four Public Sector Insurance companies -- New India Assurance Company Limited (NIACL), National Insurance Co. Ltd.(NICL), United India Insurance Co. Ltd (UIICL) and Agriculture Insurance Company of India Limited (AICIL).
The Vision Strategy documents, encompassing both the medium-term (three-year) and long-term (five-year) perspectives, were reviewed, the finance ministry said in a statement.
The Secretary provided strategic guidance with a view to enhancing operational efficiency, strengthening financial soundness, promoting sustainable growth, refining Human Resource and IT strategies, while improving service delivery.
He underscored the need for developing new and innovative customised products to meet the requirements of the younger generation and to provide coverage for emerging risks.
Emphasis was also laid on adopting technology and moving towards full digitalisation of the process, it said.
The deliberations focused on the augmentation of digital and technological capabilities while adhering to prescribed cybersecurity frameworks, adoption of digital innovations, and the expansion of insurance services through online platforms, as well as on the timely resolution of public grievances and ensuring seamless and prompt claims processing, to provide efficient services to customers, it said.
He further advised insurers to expand their distribution networks to procure business from underserved locations and segments by enhancing communication, publicity and outreach through various platforms, including social media.
