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Govt-owned insurers goes for organisational rejig, calls for consultants

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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.

Business

India-EFTA trade pact opens new opportunities for Norwegian investment across key sectors

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India’s strong economic growth trajectory and the implementation of the India-EFTA Trade and Economic Partnership Agreement (TEPA) are creating significant opportunities for Norwegian investors, particularly in manufacturing, renewable energy, infrastructure, financial services and the digital economy, according to industry insights.

With GDP growth projected to remain around 6.5 per cent annually through 2030, India is widely expected to become the world’s third-largest economy by the end of the decade, according to EY India report.

Analysts attribute this outlook to strong domestic consumption, rising investments, ongoing infrastructure development and reforms aimed at improving the ease of doing business.

The India-EFTA TEPA, which came into effect in October 2025, is being viewed as a major milestone in India-Norway economic relations.

The agreement seeks to promote trade liberalisation, facilitate investment flows and deepen cooperation in areas such as innovation, sustainability and advanced technologies.

The pact includes investment commitments of $100 billion over 15 years and is expected to support the creation of one million direct jobs in India, aligning with the country’s broader goals of expanding manufacturing capacity and strengthening its position in global value chains.

Industry experts believe the agreement creates a strong framework for Norwegian companies to expand their presence in India by combining Norway’s expertise in technology, sustainability and capital-intensive industries with India’s large market and growth ambitions.

Several sectors have been identified as priority areas for collaboration, including manufacturing, renewable energy, oil and gas, maritime services, seafood processing, information and communication technology (ICT), fintech and financial services. These industries are expected to benefit from increasing bilateral cooperation under the TEPA framework.

The rapid expansion of India’s digital economy and digital payments ecosystem is also creating opportunities for Norwegian companies seeking exposure to one of the world’s largest and fastest-growing consumer markets.

At the same time, India’s policy measures aimed at attracting foreign investment are expected to provide a supportive environment for long-term investors, as per the report.

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Delhi protests put business worth Rs 400 crore at daily risk, exposure may reach Rs 4,000 crore in 10 days: CAIT

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Protests in Delhi could put business transactions worth over Rs 400 crore at risk every day, with the potential exposure reaching Rs 4,000 crore over ten days if disruptions persist, Confederation of All India Traders (CAIT) Secretary General and Chandni Chowk MP Praveen Khandelwal said on Sunday.

Expressing concern over the economic impact of prolonged protests, Khandelwal said disruptions to traffic, transportation, customer movement and market accessibility could significantly affect the capital’s commercial activities, particularly during the crucial festive and wedding season.

He clarified that the figures represent indicative estimates of business activity at risk and not verified actual losses.

According to Khandelwal, Delhi’s estimated average daily business turnover stands at approximately Rs 2,200 crore. Even a 10 per cent decline in business activity could affect transactions worth Rs 220 crore daily, while a 15 per cent decline could put Rs 330 crore at risk. If the disruption reduces business activity by 20 per cent, the amount at risk could rise to Rs 440 crore per day.

Based on these estimates, the cumulative exposure could approach Rs 4,000 crore over ten days if disruptions continue at the higher end of the projected range.

Khandelwal emphasised that while the Constitution guarantees citizens the right to freedom of speech and peaceful assembly, traders must also be able to conduct their businesses and earn their livelihoods without avoidable disruptions.

“Delhi is not merely the national capital; it is one of the country’s most important centres of wholesale distribution, retail trade and commercial activity. Its markets connect manufacturers, distributors, retailers and consumers across India. Any prolonged disruption in Delhi therefore has a cascading impact on supply chains, business transactions and livelihoods far beyond the city,” Khandelwal said.

“The right to protest and the right to trade are both integral to a functioning democracy. Protecting one should not mean disregarding the other. The larger public interest demands a responsible approach in which democratic expression, the rule of law, economic activity and the livelihood of millions of people are all duly respected,” Khandelwal noted.

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TN announces Rs 2 per kg incentive for cooperative ration shop onion sales

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Salespersons at ration shops run by cooperative societies will receive an incentive of Rs 2 for every kilogram of onions sold under an initiative aimed at controlling retail prices and ensuring access to quality produce at reasonable rates.

The incentive was announced in a procedural order issued by Registrar of Cooperative Societies, Latha. It recognises the additional responsibilities undertaken by salespersons handling onion distribution alongside their regular ration shop duties.

According to the order, onions were procured in three phases from the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers’ Federation of India (NCCF). The procurement was undertaken to help check rising onion prices in the open market. The onions are being sold to the public through ration shops operated by cooperative societies.

The arrangement is intended to make quality onions available at fair prices while using the existing cooperative distribution network to reach consumers.

Under the order, the incentive payable to each salesperson will depend on the quantity of onions sold. The prescribed rate is Rs 2 per kilogram, linking payment directly to the volume handled through sales at the participating shops.

The Registrar’s order lists several additional tasks associated with the initiative. These include receiving onion consignments, storing the produce, sorting it, weighing quantities for customers, conducting sales and maintaining the related sales accounts. These responsibilities involve work beyond the routine distribution of ration commodities.

The incentive is intended to encourage salespersons to undertake the additional duties required to carry out onion sales through cooperative outlets. The amount due to eligible salespersons will be credited directly to their bank accounts through the Electronic Clearing Service (ECS), according to the order.

Payments will therefore be made through bank transfers based on the quantity sold. The measure combines consumer relief with an incentive for the staff responsible for implementing the sales programme.

While the procurement and distribution arrangement seeks to contain the impact of higher market prices, the additional payment acknowledges the work involved at the retail level. The order specifies a uniform incentive rate for onion sales conducted through the participating cooperative ration shops.

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