An audit study by the Comptroller and Auditor General of India revealed that between 2016–17 and 2020–21, all four public sector general insurers reported an overall loss of $26,364 crore (CAG).

The audit report on third-party administrators (TPAs) in the health insurance business of public sector insurance companies observed that the losses of the health insurance business of PSU insurers either wiped out or diminished earnings of other lines of business or exacerbated the overall losses.