The National Insurance Company (NIC) is overhauling its business processes to be more competitive in a deregulated general insurance market.
The public sector behemoth is targeting 12% growth in FY 08-09 on the back of a projected target of Rs. 4500 crore premium collection.
Global consultancy major Price Waterhouse Coopers (PWC) is acting as consultant. The restructuring process includes relocation of a few offices in Mumbai and Kolkata. Earlier, PWC had also contributed to NIC's business re-engineering initiative.
NIC's plans include massive growth projections in the health insurance market, up to 25-30%. Other initiatives include selling cheap discounted house insurance specifically targeted at flat owners.
Furthermore, NIC is planning to focus specifically on corporate clients this year. Selected regional offices at Mumbai, Delhi, Chennai, Kolkata, and Hyderabad will exclusively deal with corporate clients who pay annual premiums in the Rs. 25-30 lakh range.
Another PWC recommendation includes a centralized claim settlement system. A pilot project for this process has been started in Kolkata, halving the time for settlement to 20 days.
General insurers faced a tough year in FY 08 with free-pricing seeing heavy price discounting by the various players in an attempt to build market share.
Source: www.apnainsurance.com
Wednesday, May 28, 2008
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