State-run insurance companies to appoint consultants for changes in the structure; issue request for proposal
Government insurance companies will hire external consultants to improve their performance and make changes in their structures.
Government insurance companies will hire external consultants to improve their performance and make changes in their structures. The four government insurance companies have also issued request for proposal.
The 4 PSU general insurance companies are New India Assurance, United India Insurance, Oriental Insurance, and National Insurance.
All 4 PSU companies are going to hire consultants for a similar process in HR, IT. On appointing a consultant for the same process in all the four government insurance companies, the discussion of whether the government wants to merge the 4 companies has also started loudly.
Will 4 PSU general insurance companies merge?
The aim behind merging the 4 PSU general insurance companies is to improve the performance and the organizational structure. There is also a goal to establish a common practice for all four companies. These PSU companies have a 34% market share. At the same time, their total premium in FY22 was Rs 75 thousand crores.
These companies have 6,759 offices and 44,743 employees across the country. In this, the government has announced to infuse capital of Rs 5000 crore. The special thing is that except New India, the solvency position of other companies is weak. The government also aims to privatize a PSU General Insurance Company.
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