Union Home and Cooperation Minister Amit Shah announced that the government is working towards establishing a fully cooperative-owned insurance company, a move aimed at expanding the footprint of the cooperative model into the financial services sector.
Speaking at an event in Mumbai to mark the International Year of Cooperatives 2025, Shah said, “The cooperative sector had already taken its first step into insurance through IFFCO. Now, we are moving ahead to increase the cooperative stake in this space and launch an insurance company with full ownership under the cooperative sector. This initiative will open several new dimensions for cooperatives.”
The proposed insurance company will be entirely owned, managed, and operated by cooperative institutions and their members. The model is expected to offer customized insurance solutions tailored to the needs of farmers, rural communities, and small businesses, segments often underserved by traditional insurers.
Cooperative leaders and stakeholders present at the event welcomed the announcement, calling it a milestone that could revolutionize the sector and ensure deeper financial inclusion.