New Delhi, November 25, 2025
In a major move aimed at restructuring India’s public sector insurance ecosystem, the government has revived discussions to merge three of the country’s largest state-owned general insurers — Oriental Insurance Company Ltd, National Insurance Company Ltd, and United India Insurance Company Ltd.
The proposal, which was initially explored in 2018 but stalled due to financial stress and operational complexities, is back on the table as the Ministry of Finance looks to strengthen the balance sheets of these firms. The government is also evaluating a combination of capital infusion, organisational restructuring, and potential privatisation options to bring these insurers to stronger financial footing.
Officials familiar with the matter said that the renewed push comes at a time when public sector insurers have been under the dual pressure of rising claim ratios and limited premium growth. A consolidated entity is expected to improve operational efficiencies, reduce duplication of resources, and enhance product competitiveness.
Industry experts believe a merger could create a large, more resilient insurer capable of competing with private players that have rapidly expanded their market share over the past decade. The move is also likely to support improved solvency margins, digital adoption, and better customer service.
If implemented, the restructuring could become one of the biggest shifts in India’s insurance sector in recent years and will have far-reaching implications for policyholders, employees, and the insurance market overall. The government is expected to release more details in the coming weeks.