Tata AIG General Insurance has set an ambitious target to double its SME insurance book in Uttar Pradesh within the next three years, underlining its focus on one of India’s fastest-growing MSME ecosystems.
The insurer has established a dedicated Commercial Lines zone for Uttar Pradesh in Lucknow in FY26, supported by specialised MSME underwriting and claims teams. The move is aimed at strengthening service delivery and offering faster risk assessment, customised coverage and efficient claims support for small and medium enterprises across the state.
Uttar Pradesh has emerged as a significant growth engine for the MSME sector, registering an average of nearly 13 lakh new MSMEs annually over the past five years. Reflecting this momentum, the state now accounts for around 9 per cent of Tata AIG’s SME policy portfolio, higher than the national industry average of approximately 5 per cent.
The company said it is focusing on expanding its footprint across key industrial and commercial hubs including Kanpur, Agra, Lucknow and Moradabad, in addition to its existing presence in the National Capital Region. Priority sectors include engineering, leather, retail, education, cold storage and hard plastics.
Tata AIG crossed a gross written premium (GWP) milestone of over Rs 1,200 crore in the MSME segment in FY25, with Uttar Pradesh contributing strongly to growth. Nearly 99 per cent of policies in the state are now serviced digitally, highlighting increasing technology adoption among local businesses.
The insurer offers modular MSME insurance packages covering multiple risks under a single policy, including fire, burglary, money, fidelity, liability and personal accident. Customised solutions are also available for employee compensation, marine insurance and group health, supported by pre-underwritten products, digital issuance and analytics-led risk assessment.
Commenting on the initiative, Pranay Shah, Head – SME, Tata AIG General Insurance, said Uttar Pradesh plays a crucial role in India’s MSME growth story. “By strengthening our presence and investing in specialised teams, we aim to support MSMEs in building resilience, protecting livelihoods and ensuring business continuity,” he said.
In FY25, Tata AIG underwrote over 7.75 lakh MSME policies nationwide, covered more than 20 lakh lives under group health, group accident and employee compensation, and reported a claims settlement ratio of 96.7 per cent in commercial lines.
Industry experts note that recent fire incidents and climate-related disruptions have heightened awareness around risk coverage among MSMEs in Uttar Pradesh, making insurance an increasingly essential component of financial preparedness rather than a discretionary expense. |
