Debasish Prusty, additional secretary, DFS, on Sept 27, convened a meeting with executive directors and general managers of the six PSU insurers to deliberate on the proposed implementation of the framework.The discussions are to be followed by a higher-level meeting with the CMDs of the companies, to be addressed by DFS Secretary Sanjay Lohiya.
New Delhi: Impressed by the success of the Enhanced Access and Service Excellence (EASE) reform framework in transforming PSU banks (PSBs), the Indian government is now preparing to roll out a similar reform agenda for the PSU general insurers, with the aim of making them more competitive, agile, technology-driven customer-centric and profit making.
After deciding not to merge four multiline general insurance companies, the move signals a potentially significant change in the government’s approach to its insurance companies—from protecting and supporting legacy institutions to pushing them towards greater commercial discipline, operational efficiency, technology adoption and customer-centricity, said analysts.
The EASE framework is a joint reform agenda launched by the Department of Financial Services and the Indian Banks’ Association to transform public sector banks (PSBs) since 2018 into agile, tech-enabled, and customer-centric institutions.
After implementing EASE 8.0 successfully for the PSU banking industry, the government has now launched ease 9.0 reforms in Feb 2026, aiming to transform PSBs into globally competitive institutions aligned with the national vision of Viksit Bharat @2047.
The DFS has initiated discussions with the country’s six public sector insurance institutions—New India Assurance, United India Insurance, Oriental Insurance, National Insurance Company, GIC Re and Agriculture Insurance Company—to identify areas where an EASE-style framework could drive greater operational efficiency, digital transformation and business growth.
Debasish Prusty, additional secretary, DFS, on Sept 27, convened a meeting with executive directors and general managers of the six PSU insurers to deliberate on the proposed implementation of the framework.
The discussions are to be followed by a higher-level meeting with the CMDs of the companies, to be addressed by DFS Secretary Sanjay Lohiya.
Following the initial deliberations, several committees comprising general managers have been constituted to examine different reform areas and prepare recommendations. Their reports are expected to be finalised ahead of the meeting with the top management of the insurers.
Banking success provides the template
The government’s decision to replicate the banking reform architecture comes after what it regards as a substantial turnaround in the financial performance and operating capabilities of public sector banks.
The programme has delivered significant improvements in the banking sector. Gross non-performing assets (NPAs) of PSBs, which had peaked at 11.18% in 2018, declined to 1.80% by March 2026. At the same time, banks have accelerated digital lending, automated workflows and web-based customer-service platforms.
EASE 9.0 is built around four foundational pillars represented by the acronym R.I.S.E.:
Risk & Resilience: Strengthening financial and credit-risk management, operational resilience and enterprise-wide risk oversight.
Innovation: Accelerating the adoption of AI, generative AI, machine learning, cloud architectures and microservices.
Socio-economic Impact: Expanding financial inclusion and access for underserved segments, including gig and platform workers, while supporting broader economic objectives.
Excellence: Improving operational efficiency, customer-centric processes, governance and cost-effective next-generation operating models.
Technology at the heart of reforms
Under EASE 9.0, PSBs are being encouraged to leverage technology to improve productivity, achieve greater scale and develop new business models. Several of these initiatives could provide a template for the proposed reforms in the insurance sector.
Among the key initiatives are the creation of Global Capability Centres (GCCs) and capacity-building roadmaps. PSBs are expected to implement GCC strategies during FY2026-27, with State Bank of India, which established the first GCC among state-run lenders earlier this year in Karnataka, taking the lead.
Banks are also being asked to assess active-active data-centre architectures for inclusion in their five-year business plans to strengthen business continuity and operational resilience.
Other priorities include developing core AI capabilities through large language model (LLM) licensing, GPU strategies and private-cloud deployment, building enterprise-wide consent-management capabilities, and implementing data tokenisation and anonymisation at scale.
The EASE 9.0 agenda also encourages collaborative solutions among PSBs, enabling banks to combine their capabilities in areas such as blockchain, advanced risk assessment and fraud-detection models.
Insurance sector faces a different transformation challenge
For PSU general insurers, the proposed EASE-style reforms are likely to focus on strengthening underwriting discipline, improving claims management, accelerating digital adoption, enhancing customer service and distribution efficiency, and building stronger technology and data capabilities, said sources.
The initiative comes at a time when PSU general insurers are facing increasing competition from private-sector insurers, changing customer expectations and rapid technological disruption.
The proposed framework could therefore mark a significant shift in the government’s approach to PSU insurers—from financial support and administrative oversight towards measurable performance, technology-led transformation, operational resilience and market competitiveness, said analysts.