- The Finance Ministry is considering a capital infusion in three loss-making public sector general insurance companies based on their financial performance for the first nine months of the fiscal year.
- If the capital infusion is deemed necessary, it will be made during the fourth quarter of the current financial year.
- Last year, the Finance Ministry instructed the three insurers (National Insurance Company Limited, Oriental Insurance Company Limited, and United India Insurance Company) to focus on improving their bottomlines and underwrite only good proposals.
- The financial review will assess the impact of restructuring on profitability and the solvency margin. These companies have been asked to meet the regulatory requirement of maintaining a solvency ratio of 150% or higher.
- In the past, the government has provided capital infusions to these insurers to improve their financial health. The total capital infusion so far has reached Rs 17,450 crore.
- Public sector general insurance companies are undergoing reforms, including organizational restructuring, product rationalization, cost rationalization, and digitalization. The government has also announced its intention to privatize one of the general insurance companies.