Public sector general insurance companies (PSGICs) have reported a significant turnaround in performance, according to a review meeting chaired by Finance Minister Nirmala Sitharaman. The total premium collected by PSGICs has risen from approximately ₹80,000 crore in 2019 to nearly ₹1.06 lakh crore in 2025, reflecting a marked improvement in business metrics.
The review highlighted that all four public sector general insurers—Oriental Insurance Company Ltd. (OICL), National Insurance Company Ltd. (NICL), United India Insurance Company Ltd. (UIICL), and New India Assurance Company Ltd. (NIACL)—have returned to profitability.
OICL and NICL started posting quarterly profits from Q4 of FY 2023–24 and Q2 of FY 2024–25, respectively. UIICL recorded a profit in Q3 of FY 2024–25, marking a return to the black after a gap of seven years. NIACL, the market leader among the four, has continued to post profits consistently.
Despite the progress, general insurance penetration in India remains low—at 1% of GDP, compared to the global average of 4.2% in 2023. However, insurance density has shown steady growth, increasing from $19 in 2019 to $25 in 2023. The Finance Minister emphasized the need for PSGICs to enhance both penetration and density to provide broader financial protection.
A five-year analysis of the health insurance segment presented during the meeting showed sustained premium growth across private insurers, standalone health insurers (SAHIs), and PSGICs. Incurred claims ratios, which had spiked during the COVID-19 pandemic in FY21—reaching 126% for PSGICs and 105% for private insurers—have since moderated. By FY24, the ratios had declined to 103% for PSGICs, 89% for private insurers, and 65% for SAHIs.