Indian Finance Minister Nirmala Sitharaman have demanded an urgent Digital transformation of all general insurance companies for the General Sector (PSGICS) to improve the operational efficiency and service quality. She emphasized to adopt Artificial intelligence (AI) -driven systems for speeding up and improve the settlement’s settlements in motor own injuries and health insurance segments.
Sitharaman highlighted the strategic role that Advanced data analysis and AI In building-related pricing models and effective frameworks for handling claims-both decisive for improved risk assessment and long-term sustainability. She also emphasized the need for PSGICS to develop innovative insurance products tailored New riskssuch as cyber fraud and diversify their portfolios in line with developing customer needs.
PSGICS has been aimed at implementing these initiatives within a defined time frame, said the Ministry of Finance in one statement. Progress will be carefully monitored by regular reviews to ensure effective implementation and concrete results.
“The Union Finance Minister emphasized the urgent need for digital transformation over all PSGIC to improve delivery and efficiency in the service. This includes the adoption of AI-powered claims systems, especially for motor own injuries and health insurance products, to ensure faster and more accurate resolution,” said the statement.
“The Union Finance Minister also emphasized the importance of utilizing advanced data analysis and artificial intelligence to develop exact pricing models and effective claims, which is crucial for improved risk assessment and long -term sustainability,” added it.
In order to expand the market and improve accessibility, Sitharaman encouraged strategic partnerships with intermediaries and Fintech company. These collaborations aim to expand PSGICS’s national footprints and drive deeper insurance penetration over various demographics.
The use of AI for digital transformation of public insurance companies for the public sector is significant to India For several strategic, operational and socio -economic reasons, especially at a time when private insurance companies are already Assumes AI. Without similar upgrades, public insurance companies risk falling behind and losing relevance.
With AI and data tools, insurance companies can assess the risks more accurately and set smarter, more flexible pricing, which reduces the losses and ensures long-term stability. Also, as digital threats as Cyber embroidery is growingAI can help design new insurance products to cover these modern risks. At the same time, AI can help identify and serve underwear communities by creating tailor -made products. AI-activated insurance companies can support important national goals as affordable health coverageThe protection against disastersand Economic security for vulnerable groups.
While AI accelerates claims treatment – especially in engine and health insurance – cuts delays and mistakes, it also reduces routine workload, lowers costs and allows the staff to focus on better services.
Although India’s general insurance penetration remained at 1% of gross domestic product (GDP) – compared with the global average of 4.2% in 2023 – insurance density has shown significant improvements, increased from $ 9 2019 to $ 25 years in 2023, the statement said. Sitharaman emphasized the importance of increasing penetration and density to broaden financial protection throughout the country.
Finance Minister praises fintech for DPI growth
In a parallel development, Sitharaman India’s fintech company praised to strengthen the country Digital public infrastructure (DPI). India’s DPI includes one Uniform payment interface (UPI) public platform and Aadhaarexclaimed as the world’s largest biometric identification system.
“We want every state to speed up Digitization“Sitharaman said in an X post.
“We also help them to speed it up. At the same time as the 50-year interest-free loans for investments, we emphasize that we will stimulate states that will digitize their items at the earliest. So we want digitalisation to happen before and in every sector,” she added.
The Finance Minister recently visited the office for Tall laboratoriesA digital fintech company in India. Sitharaman interacted with the employees and recognized India Fintech company’s contribution to expand the country’s digital public infrastructure (DPI) and to enable seamless, secure and inclusive financial services for merchants and Micro, small and medium -sized companies (MSMES).
India’s DPI includes digital identity, real-time payments and consent-based data sharing-has shown how 1.4 billion people can access important services in areas such as financing, healthcare, education, governance, taxation and skills development. This system was built through strong cooperation between the public and private sector, which enabled innovations tailored to India’s large and diverse population.
A G20 working group Report Highlights how AI can further strengthen DPI by improving the delivery of services in sectors such as health, education, agriculture and finance. AI can analyze major tasks to support better decision -making, optimize resource use and adapt services. It can also automate repetitive tasks and streamline the systems.
In addition, AI can run innovation within DPI. Open source code tools, software and AI models that are freely available can be reused and adapted, encourages participation of the private sector and makes DPI more scalable and influence.
In order for artificial intelligence (AI) to work properly within the law and thrive on growing challenges, it must integrate a corporate blockchain system that ensures data input quality and ownership – which makes it possible to keep data secure and at the same time guarantee data impossible. Check out COINGEEK’s coverage on this new technology to learn more Why Enterprise Blockchain will be the spine in AI.
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