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Govt-owned insurers goes for organisational rejig, calls for consultants
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SME Times News Bureau | 03 May, 2022
Is the central government moving towards merging its four general insurance companies into one?
The
question pops up as the four general insurers have decided to
restructure the organisation towards profitable growth and have called
for Request for Proposal (RFP) from consultancy firms.
The assignment is called "Organisational Efficiencies and Performance Management in Public Sector General Insurance Companies."
The
four insurers are: The Oriental Insurance Company Limited, National
Insurance Company Limited, The New India Assurance Company Limited and
United India Insurance Company Limited.
Of the four, The New India Assurance is listed in the stock exchanges.
As
per the tender, the companies are calling for one consultant for the
assignment which is logical as the process, human resource policies and
procedures are uniform in the four companies, a senior industry official
told IANS.
Though the central government did not proceed further
on its earlier announcement to merge the three unlisted non-life
insurers- The Oriental Insurance, National Insurance and United India
Insurance- or to privatise one of the three.
Given this, the current move seems to be the logical step towards that, say senior industry officials.
Further, the employees in the four companies also demand the same.
According
to a senior industry official, the privatisation move is still on the
cards and merger is not in consideration of the government.
Be
that as it may, as per the RFP, the four companies are undergoing a
transformative journey for the last two years with successfully running
on the path to profitable growth and efficiencies, optimisation.
"This, being the third year, is earmarked for Organisational Efficiencies."
Accordingly,
there is a proposal for restructuring the organisation to bring in
profitable growth and employee development through Performance
Management and Capability Management, in alignment with the key performance indicators (KPI) devised the public sector general insurance companies.
The
four companies have found a need for a consultant who could quickly
absorb itself into this journey of ongoing reforms and permeate them
into each and every branch and staff by designing, handholding and
successfully implementing the process of such transition through
organisational restructuring, performance management and its real-time
measurement, allocation of specific roles and responsibilities as well
as performance indicators for sales, non-sales and support staff,
capacity and capability building and carefully crafted change management
approach.
As on 31.03.2022, the four insurers together have
procured a total premium of Rs.75,116 crore with a market share of
around 34 per cent.
The total employees' strength is around 44,743 spread over 6,759 offices.
The
expected duration of the proposed assignment for the selected
consultants is 10 months, with a provision for extension, if required on
existing terms.
As per the RFP, the scope of work involves
organisational restructuring that is irreversible providing for
digitally enabled workflows to convert operating offices into customer
experience and business development centres while centralising
underwriting/claims/accounts and others into the Regional Hubs;
-
activate all three key channels for retail business growth namely,
Agency, Bancassurance and Alternative channels through suitable sales
management, incentives and rewards processes;
- create/shift
large corporate businesses (both direct and broker-driven) at select6-8
locations, directly reporting to the Head Office.
- provide
capacity planning framework through manpower redistribution for both
Business Development (BD) and Non-BD roles, with a clear focus on retail
business through pre-underwritten products and simplified processes;
-
provide a comprehensive reskilling/up - skilling and capability
building framework for BD, Non-BD, large corporate and vertical teams to
cope with the above restructuring in a confident and motivated manner;
-
handhold the insurers in implementing the new organisation structure
across functions and geographies by providing carefully designed and
sensitively implemented change management approach and communication
framework;
- designing objective and quantifiable KPIs for each
unique role along with their measurable outcomes and its integration
with the performance appraisal system for each PSGIC to achieve y-o-y
milestones;
- based on the above KPIs, creating performance
dashboards for each sales and non-sales staff at the Operating Offices,
Regional Offices and Head Office as well as across functions linked with
the core system.
While the majority of the work is centered
around a common approach for all the four insurers, the implementation
shall happen at individual company level.
"Broadly, 80 per cent
of the proposed assignment shall be allocated towards creating
unified/common strategies/methodology and frameworks while 20 per cent
of the proposed assignment will be allocated towards customising and
rolling them out at individual company level," the RFP said.
Interested
consultancy firms should submit their proposals to the Chief Executive,
General Insurers' (Public Sector) Association of India (GIPSA), the
coordinating body for the project.
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