four Central Government-owned non-life insurance companies on Thursday planned to implement a major organizational restructuring in less than a month. Industry executives said the change is expected to cut costs for insurance companies, free up employees for re-employment, and improve customer service in general.

The four insurers include, Oriental Insurance Company Limited, National Insurance Company Limited,

limited and United India Insurance Company Limited, Out of the four, is listed on stock exchanges.

Four companies have appointed Ernst & Young (EY) as consultants for assignments for 10 months, referred to as “”.organizational ability and performance management in public sector general insurance companies.”

Following are the changes as per the new organizational restructuring:

• The new structure will follow – Operational Office / Claim Center / Regional & Head Office and the old four tier structure – Branch / Divisional / Regional / Head Office. And, with time, regional offices may also disappear, an industry official told IANS.
• As per the present scheme, the claim processing will be taken from the branch/divisional offices and will be shifted to the claim centre. This will enable the operational offices-branches/divisions- to focus on marketing.
• There will be four types of claim hubs: health, vehicle damage, vehicle third party and general. There are also plans to create an underwriting hub for streamlining work and speedy issuance of policies.
• national insurance company The implementation date has been set for 15 September.

An industry official told IANS, “Hubs will be successful if turn-around-time and other performance metrics are implemented. This is how executives’ performance can be measured. The current system lacks this aspect.” ”

In addition, processing claims from operating offices may result in payment of lease rentals as they are operating from rented premises.

It will also free up employees from operational offices for efficient redeployment.

“As is happening now, officers can be posted in different departments so that they get a holistic experience and move up the corporate ladder,” the official said.

According to an employee union leader, the management has not called the unions to inform about the proposed changes.

The four companies employ about 44,750 employees out of about 6,760 offices.

Already companies have started reducing the number of operating offices by merging and closing.

As per request of proposal (RFP) Issued earlier by companies, the scope of work includes organizational restructuring which is irreversible providing digitally enabled workflows to convert operational offices into customer experience and business development centers while underwriting/claims/accounts and others to be centralized in regional hubs;

• Activate all the three major channels for retail business growth, namely agency, bancassurance and alternative channels through appropriate sales management, incentives and rewards processes.
• Create/relocate large corporate business (both direct and broker-operated) at select 6-8 locations, report directly to Head Office.
• Provide a 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 capacity building framework for BD, non-BD, large corporate and vertical teams to tackle the above restructuring in a confident and motivated manner.
• Handle insurers in implementing new organization structure across functions and geographies by providing a carefully designed and sensitively implemented change management approach and communication framework.
• Designing objective and quantitative KPIs for each unique role with their measurable outcomes and its integration with the performance appraisal system for each PSGIC To achieve the milestones of yo.
• Based on the above KPIs, creating performance dashboards for each of the sales and non-sales employees in operating offices, regional offices and head office as well as core system related functions.

While much of the work is centered around a uniform approach for all four insurers, implementation will take place at the individual company level.

RFP told IANS, “Broadly speaking, 80 per cent of the proposed assignments will be allocated for creating an integrated/common strategy/methodology and framework, while 20 per cent of the proposed assignments will be adapted and rolled out at the individual company level.” will be allotted.” ,

(with inputs from IANS)