Ravi Mital, Additional Secretary, Department of Financial Services, has indicated that the government is keen to effect a merger among a few public sector general insurance companies.
Through a video conferencing, Mittal was addressing a two-day conclave of the senior management of all public sector general insurance companies today in Udaipur.
“We don’t want four government owned general insurers competing each other. We would prefer two general insurance companies in the market. That means three of the public sector general insurance companies should merge first and then go for listing ,’’ said Mittal.
However, according to sources, Mitta didn’t give any time-frame to effect the merger among the companies..
Mittal also had asked the officials to suggest how to increase insurance penetration further in the country. .
The idea of merger among a few public sector general insurers have found ready acceptance among the CMD of these companies.
“it is a good thing for the state-owned non-life insurers. At present they are competing among themselves which often results in their solvency margin coming down,’’ said a CMD of a PSU general insurer, who doesn’t want to be named..
The conclave participated by the CMDs of New India Assurance, GIC Re, Oriental Insurance and National Insurance has been organized to brain storm the future strategies of the public sector general insurance companies which are facing intense competition and also losing their market share.
Some of the other issues which were discussed in the conclave:
– . the concept of prudent under writing should be adopted and solvency margin should be improved and maintained by the companes,..
– officers ,marketing force and agents should be given facilities like private insurers.
– there must be cap on discounts
– to give one more chance for pension
– open CR practice should be stopped as some officers are scared to write correct CR
– pre promotional exam should be like GRE or GATE exams. the candidate should qualify only and marks should not be counted for promotion.
–Some of the general managers emphasised that the office in charges could not take leave for preparation of exam and they score less while other officers take long leave for preparation of exam and score higher marks and get the promotion despite the fact that they are practically not good performer. This is causing frustration among officers.