India’s Finance Minister Nirmala Sitharaman directs state-run general insurers to create innovative products to tackle new risks like cyber fraud, boosting insurance growth nationwide.
Finance Minister Nirmala Sitharaman has called on state-run general insurance companies across India to develop innovative insurance products to address emerging risks such as cyber fraud. The directive came during a review of the performance of Public Sector General Insurance Companies (PSGICs), which have recently returned to profitability amid a surge in industry premiums.
PSGICs, including major firms like New India Assurance, Oriental Insurance, and United India Insurance, play a key role in India’s insurance sector by providing coverage in various segments including health, motor, and property insurance. With increasing threats in digital security and evolving consumer needs, the Finance Ministry emphasized the importance of diversifying insurance products and improving underwriting practices.
This move aims to strengthen insurance penetration and density, fostering greater financial security for individuals and businesses across the country. The Finance Ministry highlighted that these steps are essential to keep pace with rapidly changing risk landscapes, especially in states with high cybercrime rates.
The government expects that by innovating and expanding their product portfolios, state insurers will remain competitive while meeting the demands of modern India.