Sh. M. Nagaraju underscores the need to expand insurance coverage to a wider segment of the population, advises companies to prioritize inclusion of more individuals under the ambit of insurance

A meeting was convened under the chairpersonship of Shri M. Nagaraju, Secretary, Department of Financial Services (DFS), Ministry of Finance today to undertake a comprehensive review of the Vision Strategy documents of three Public Sector Insurance/ Reinsurance companies, namely Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC Re) and Oriental Insurance Co Ltd. (OICL)

The Vision Strategy documents covering the medium-term (three-year) and long-term (five-year) horizons were examined. Throughout the discussions, Secretary (DFS) offered strategic direction aimed at boosting operational efficiency and reinforcing financial stability, while underscoring the importance of fostering sustainable growth. Instructions were also issued to further develop Human Resource and Information Technology strategies to enhance overall service delivery.

Secretary (DFS) emphasized that the policies of the companies should be oriented towards increasing overall insurance penetration and density, while ensuring retention of market share. He further underscored the need to expand insurance coverage to a wider segment of the population, advising that companies should prioritize inclusion of more individuals under the ambit of insurance rather than concentrating predominantly on big-ticket policies. The companies were advised to devise investment and underwriting strategies to reduce loss ratios.

Other key areas that were deliberated upon are as below :

• developing new and innovative customized products,
• augmentation of digital and technological capabilities while adhering to prescribed cybersecurity frameworks,
• expansion of insurance services through online platforms,
• timely resolution of public grievances,
• expanding distribution networks and enhancing communication & publicity through various platforms, including social media.

The meeting was also attended by Shri Sanjay Lohiya (Special Secretary, DFS), Dr. Debasish Prusty (Additional Secretary, DFS), CEO & MD of LIC, Mr R. Doraiswamy, ED of GIC Re, Shri Hitesh Joshi, and CMD of OICL, Shri Sanjay Joshi and other senior officers of this Department and Companies.

Insurance penetration strategy focuses on wider coverage, stronger underwriting, digital expansion and improved service delivery. Operational review of the Vision Strategy documents of LIC, GIC Re and OICL focused on medium-term and long-term planning for improving operational efficiency, financial stability and sustainable growth. Strategic directions were given to strengthen human resource and information technology frameworks to enhance service delivery and to align company policies with broader insurance-sector objectives. Insurance policy direction emphasized increasing insurance penetration and density while preserving market share, with a focus on widening coverage to a larger segment of the population and developing investment and underwriting strategies to reduce loss ratios.