Sanjay Lohiya, secretary,DFS advised the PSGICs to strengthen their focus on profitable lines of business and adopt suitable measures to bring down the Incurred Claim Ratio (ICR).
New Delhi:Sanjay Lohiya, secretary,Department of Financial Services (DFS), Ministry of Finance has asked public sector general insurance companies (PSGICs) to strengthen their performance monitoring through a robust and standardised Key Performance Indicator(KPI framework that should be reviewed on a quarterly basis.
The secretary advised the PSGICs to strengthen their focus on profitable lines of business and adopt suitable measures to bring down the Incurred Claim Ratio (ICR).
Greater use of technology and accelerated digitalisation were also emphasised in the review meeting, while optimising expenditure on Information Technology and other digital initiatives.
Lohiya along with Debasish Prusty, additional secretary, and other senior officers of the Department,was holding a review meeting of the PSGICs on Wednesday and advised that the KPIs should enable consistent and comparable assessment of financial as well as non-financial performance across companies,
The review meeting, on the basis of the financial and business performance of the PSGICs in FY 2025–26,covered underwriting performance across all Lines of Business (LoBs), KPIs, digital initiatives and other operational issues of the companies, .
The Secretary further emphasised the need to improve communication, publicity and customer outreach, including through social media and other platforms, to enhance awareness about various insurance products and the outreach of the PSGICs in underserved segments and areas.
He also advised the companies to improve insurance penetration and density while reducing protection gaps.
He wanted the PSGICs to ensure expeditious redressal of customer grievances and also focus on the quality of redressal.
The meeting was also attended Rajeshwari Singh Muni, CMD, National Insurance Company (NICL), Bhupesh S. Rahul, CMD United India Insurance,Sanjay Joshi, CMD, Oriental Insurance Company (OICL), Lavanya R. Mundayur, CMD, Agriculture Insurance Company, Mr. S. Sivasankar, executive director, New India Assurance and other senior officials from PSGICs.
Mr. Nagaraju and before him earlier Secretaries in DFS repeatedly advised PSGICs exactly the same thing “focus on profitable business”. Mr. Sanjay Lohiya 1994 batch IAS Secy. DFS, from June ’26 is no exception. He will also be replaced in an year or so by another to advise the same thing.
As the owner, no one owns any accountability for poor supervision on PSGICs which are engaged in predatory undercutting of business resulting in bad to worse results.
Such big mouth empty talks are of no use. Only alternative is to merge the 4 into a fully restructured monolithic GIC like LIC.
DFS has to take the challenge. If a Will is there you find the Way.