PSU GENERAL INSURANCE COs GEAR UP FOR COMPETITION

The public sector general insurance companies in the country have taken up a restructuring exercise to improve their performance in the wake of stiff competition from private players, according to Mr N.S.R Chandra Prasad, Chairman and Managing Director of the National Insurance Company Ltd.
At a press meet here on Sunday, after participating in the State-level All-India General Insurance Field Workers' Association, he said that by the end of 2008-09 financial year, the general insurance companies had collected premium of Rs 32,000 crore, of which the public sector companies accounted for 60 per cent. The National Insurance Company had collected premium of Rs 4,280 crore.
He said, “After the opening up of the market, the private players have taken away a substantial chunk, but the market is growing and the PSU companies are also registering growth year-on-year. It is estimated that by 2015 the premium income of all general insurance companies in the country will cross Rs 1,00,000 crore.”
General insurance companies, including the National Insurance, have appointed international consultants to improve their performance. Core insurance services would also be introduced, similar to core banking solutions, to improve their performance, he added.
He said the role of development officers in the insurance sector could not be underestimated or undermined. All the PSU general insurance companies were hiring personnel for the past two years and it would continue for two more years. “A thousand officers are being appointed,” he said.
Claim settlement was also good in the PSU companies, he added. On the issue of demands put up by the insurance staff, he said they would be looked into.