The solvency positions of India’s three public sector undertaking (PSU) general insurance companies are precarious, having worsened in FY23.
This has resulted in private insurers increasing their market share, according to a report by ICRA. The capital requirement of three PSU general insurers (excluding New India) is estimated at a sizeable Rs 17,200-17,500 crore to meet the regulator-prescribed solvency of 1.5X as of March 2024, assuming 100% forbearance on fair value change account.
