BCG Set 6mnths Deadline To Submit PSU Insurers Revamp Report

Bangalore: The Boston Consulting Group (BCG) has been set a deadline of six months for submitting its report on restructuring of the three public sector general insurance companies Oriental Insurance Company Ltd, United India Insurance Company Ltd and National Insurance Company Ltd. The restructuring would revolve around improving underwriting profits of the companies. So far insurers have been focusing only on topline growth. The consequent pressure on profitability was evident from the slim underwriting margins of barely 0.5 per cent. Moreover, insurers recognise that sale of investments is not a permanent source of bolstering capital for meeting solvency. The BCG group will assist the three insurers to restructure the operations so as to optimise costs and rationalise operations.