New Delhi, Sept. 2 -- The Finance Ministry on Wednesday asked public sector general insurance companies to improve insurance penetration and reach underserved areas while taking steps to bring down their claim ratios and strengthen customer grievance redressal.

The directions were issued during a review of the financial and business performance of Public Sector General Insurance Companies (PSGICs) for 2025-26, chaired by Department of Financial Services Secretary Sanjay Lohiya, according to a Ministry of Finance release.

"The Secretary advised the PSGICs to strengthen their focus on profitable lines of business and adopt suitable measures to bring down the Incurred Claim Ratio (ICR)," the ministry said.

The incurred claim ratio broadly...