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M Nagaraju Urges Insurance Expansion to Cover Wider Population

Financial Services Secretary M Nagaraju emphasized the need for insurance companies to expand coverage to a wider population segment, rather than focusing solely on large policies. A review meeting was held for the vision strategies of LIC, GIC Re, and Oriental Insurance, focusing on reducing loss ratios and enhancing digital capabilities. The companies were advised to develop innovative products, improve distribution networks, and ensure timely grievance resolution. Additionally, the government has notified 100% FDI in the insurance sector under the automatic route, subject to compliance with the Insurance Act.

Key Points: M Nagaraju: Expand Insurance to Wider Population

  • M Nagaraju advises expanding insurance coverage to wider population
  • Companies should prioritize inclusion over big-ticket policies
  • Vision strategies reviewed for LIC, GIC Re, and Oriental Insurance
  • Focus on innovative products, digital capabilities, and reduced loss ratios
  • Government notifies 100% FDI in insurance under automatic route
2 min read

Need to expand insurance coverage to wider segment of population: M Nagaraju

Financial Services Secretary M Nagaraju advises insurance companies to increase coverage, reduce loss ratios, and adopt innovative products for wider population inclusion.

"The policies of the companies should be oriented towards increasing overall insurance penetration and density, while ensuring retention of market share - M Nagaraju"

New Delhi, May 5

The policies of the companies should be oriented towards increasing overall insurance penetration and density, while ensuring retention of market share, said M. Nagaraju, Secretary, Department of Financial Services.

He underscored the need to expand insurance coverage to a wider segment of the population, advising that companies should prioritise inclusion of more individuals under the ambit of insurance rather than concentrating predominantly on big-ticket policies.

A meeting was convened here to undertake a comprehensive review of the vision strategy documents of three public sector insurance/reinsurance companies - Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC Re) and Oriental Insurance Co Ltd. (OICL)

The companies were advised to devise investment and underwriting strategies to reduce loss ratios, according to a Finance Ministry document.

Key areas that were deliberated upon are developing new and innovative customised 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 and publicity through various platforms, including social media.

The vision strategy documents covering the medium-term (three-year) and long-term (five-year) horizons were examined during the meeting.

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, said the statement.

Meanwhile, the Union government has notified 100 per cent foreign direct investment (FDI) in the insurance sector under the automatic route, paving the way for greater participation by overseas investors.

Foreign investment in insurance companies will be subject to compliance with provisions of the Insurance Act, 1938, and mandatory approval from the Insurance Regulatory and Development Authority of India (IRDAI) for undertaking insurance and related activities.

Investments in LIC will remain governed by the Life Insurance Corporation Act, 1956, along with applicable provisions of the Insurance Act.

- IANS

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Reader Comments

V
Vikram M
Good to see government pushing for wider coverage. But without improving claim settlement ratios, people won't trust insurance. My uncle had a nightmare getting LIC claim processed. Need faster grievance resolution as mentioned.
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Arjun K
Very important step! Insurance penetration in India is still very low compared to other countries. We need innovative products for rural areas and small towns. Digital platforms will definitely help reach the uninsured. 👏
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Ravi K
One concern: With 100% FDI now allowed, will foreign insurers focus only on profitable urban segments? Government must ensure they also serve rural India. Regulation needs teeth to enforce inclusive coverage, not just fancy words on paper.
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Lakshmi X
I work in a small village in Tamil Nadu - most people here have no insurance at all. Even basic health insurance would be life-changing. Hope these new policies reach our people too. 🙏
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Manish T
Good direction but execution is key. Public sector insurers need to reduce their loss ratios first. The e-bidding and digital push mentioned in the article should help. Also, need simpler language in policy documents for common people.

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