New Delhi, May 29 -- Union finance minister Nirmala Sitharaman on Wednesday directed public sector general insurance companies to ensure wider financial protection through more innovative products as general insurance penetration in India remains low at 1% of GDP compared to a global average of 4.2% in 2023. Insurance density has, however, improved steadily, increasing from $9 in 2019 to $25 in 2023, a finance ministry statement said. Sitharaman was chairing the review meeting of public sector general insurance companies (PSGICs) in New Delhi.The finance minister emphasised urgent need for digital transformation across PSGICs to improve service delivery and efficiency. This includes the adoption of AI-driven claim settlement systems, particularly for Motor Own Damage and Health insurance products, to ensure faster and more accurate claim resolution. Sitharaman also directed the companies to develop innovative insurance products tailored to new and emerging risks, including cyber fraud, and to diversify their product portfolio in line with evolving consumer needs. The importance of robust underwriting practices and portfolio optimisation was also highlighted, with instructions to align combined ratios with global industry benchmarks to safeguard profitability and financial stability....