|Targeted News Service|
Following is the text of the speech delivered by the Union Finance Minister
I am happy to be with the Chairmen of PSU Insurance Companies today for reviewing their performance in 2011-12, resolving common issues and setting out broad strategy framework for the insurance sector during 2012-13 onwards.
On the economic front, as I pointed out during my meeting with the CEOs of Public Sector Banks and Financial Institutions yesterday, we faced a challenging situation in 2011-12. On Insurance Sector front too, there were natural calamities and catastrophic events in
I hope that the trough in the rate of growth cycle is behind us. Specifically in the Insurance Sector, I have had detailed interactions with IRDA during its last Board Meeting held on 4th April, where number of regulatory issues were discussed at length and I am hopeful that interactive process with the insurance regulator and other such associated issues will be streamlined soon. I am, likewise, happy to be here interacting with all PSU Insurance Companies after more than 2 years and I am sure it will set a path of healthy and sustainable insurance growth.
We have travelled a long distance since the time Insurance was nationalized in 1956. The growth in premium underwriting has witnessed strong CAGR of 18.85% since 2001. Insurance penetration and density has improved since then. The public confidence in the industry is more positive today then it was earlier.
We are all aware that the insurance sector has been contributing immensely to the infrastructure development of the country. The total investments of the PSU insurance companies in infrastructure (as on
In agriculture sector, I have noted the progress in terms of coverage of farmers under agriculture insurance. However, the number of non-loanee farmers has been coming down over the years.