Finance ministry asks public insurers to sharpen underwriting and claims performance
A review of FY2025-26 performance focused on profitable business, incurred-claim ratios, operating discipline and effective digitalisation.
The Department of Financial Services has reviewed the FY2025-26 performance of India's public-sector general insurance companies, including underwriting, key performance indicators, digital initiatives and operating performance.
The review called for a stronger focus on profitable business, lower incurred-claim ratios and digitalisation that improves operating efficiency.
Why it matters
Underwriting and claims discipline affect pricing, solvency, customer service and the risk that public capital may be needed to support an insurer. Digital investment matters when it improves risk selection, service quality and operating cost rather than simply adding channels.
SCULTRA point of view
The direction is sensible, but assessment should be company-specific. Combined ratios, solvency, claim-settlement time, expense ratios, portfolio mix and repeatable digital productivity are more useful than a single sector-level statement.
Limitations
The official release describes the review and its priorities but does not provide a complete comparable table for each insurer. It should not be treated as evidence that every company has improved on the same measures.
Source: Press Information Bureau / Department of Financial Services, 2 September 2026, 19:14 IST.