New Delhi, May 5: Companies must design their policies to focus on increasing insurance accessibility for a larger population. This statement was made by M. Nagaraju, Secretary of the Department of Financial Services (DFS).
He emphasized the necessity of expanding insurance coverage to a broader demographic. Nagaraju advised companies to prioritize including more individuals in the insurance fold rather than concentrating solely on large policies.
This guidance was provided during a meeting convened to review the vision strategy documents of three public sector insurance/reinsurance companies: Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC), and Oriental Insurance Company Limited (OICL).
According to a document from the Finance Ministry, companies have been advised to develop investment and insurance strategies to reduce loss ratios.
Key areas of discussion included the development of new products, enhancing digital and technological capabilities while adhering to established cybersecurity frameworks, expanding insurance services through online platforms, timely resolution of public complaints, and improving communication and outreach through various platforms, including social media.
During the meeting, medium-term (three years) and long-term (five years) strategic documents were reviewed.
The DFS Secretary presented strategic guidelines aimed at enhancing operational efficiency and strengthening financial stability, while also emphasizing the importance of promoting sustainable development.
The statement indicated that directives were issued to further develop human resource and information technology strategies to improve overall service delivery.
Meanwhile, the central government has notified 100% Foreign Direct Investment (FDI) in the insurance sector under the automatic route, paving the way for greater participation from foreign investors.
Foreign investment in insurance companies will be subject to compliance with the provisions of the Insurance Act of 1938 and obtaining mandatory approvals from the Insurance Regulatory and Development Authority of India (IRDAI) for insurance and related activities.
My name is Narendra Jijhontiya. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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