United India Insurance company gears up to meet challenges posed by private players
VISAKHAPATNAM: The United India Insurance Company Limited is implementing a transformation project by engaging Boston Consultancy Group to face the challenge posed by opening up of the insurance sector to private players.
“The project, christened UNI Surge, envisages change in method of operation, organisational structure, better customer care and strengthening the finances,” company’s Chairman and Managing Director G. Srinivasan said on Tuesday.
In an interview, he told The Hindu that during the first half of current fiscal, they had emerged number one among the four public sector insurance companies in terms of growth. He said they wanted to motivate the workforce and development staff to attain greater heights, sustain the growth tempo by improving customer care, speedy settlement and providing value for money.
“We have closed our accounts by May 12 – 45 days ahead of the previous year – a record by any standards,” he said. The annual general body meeting was held before June 30.
As part of the endeavour to provide value for money, they would focus on products at a competitive price. Mr. Srinivasan said they would adhere to international benchmarks by introducing core insurance solution at all its 1100-odd branches shortly. The process would be completed by mid-next year.
Touching upon the challenges being encountered by the insurance sector due to increased awareness and expectation among the clients, he said people were inclined and willing to take more non-life insurance policies due to change in their threat perceptions. There was wide scope for tapping health, motor, individual and household segments.
Mr. Srinivasan said the market had to be tapped in semi-urban, rural and mofussil areas. Quoting a study, he said the non-life insurance industry, which was worth Rs.28,000 crores last year, would grow to Rs.1,00,000 crores by 2015.
On the decision of the Union Cabinet to raise FDI cap in insurance sector from 26 to 49 per cent, he said this would open floodgates to new players. Now, the number is 20 and it would grow to 50 in next three years. Along with that, they would bring international benchmarking, forcing the old players in the market to keep on changing themselves for better results. He termed the market meltdown as a temporary setback and hoped that it would recover soon.