The Hindu Business Line : NICL short-lists 6 cos for core insurance solution

Bangalore, Sept 8 The public sector National Insurance Company Ltd (NICL) has shortlisted six information technology companies for implementing the Core Insurance Solution (CIS).

Speaking to reporters here on Monday, the Chairman and Managing Director of NICL, Mr V. Ramasaamy, said, “We intend finalising the bids over the next 15 days.”

Mr Ramasaamy, however, declined to reveal the names of the bidders for the CIS.

Evaluation on

But sources said the companies in the race for implementing the CIS included TCS, Wipro and 3i Infotech Ltd. An NICL team, along with their business process re-engineering consultants PricewaterhouseCoopers, was evaluating the technical bids. The financial bids for the CIS would be taken up over the next few days, the sources added.

A pilot project of the CIS is expected to be completed in 25 per cent of NICL’s 965 offices by May next year. Based on this experience, Mr Ramasaamy said, “we will be in a position to correct bugs if any and complete the CIS implementation by September 2009 itself”.

Referring to the performance of NICL, Mr Ramasaamy said the company had made a net profit of Rs 172 crore in the last financial year. Last year’s profits were buoyed by NICL’s income from investments of Rs 1,140 crore.

This year, NICL, he said, had fixed a net profit target of Rs 300 crore and an investment income of Rs 1,200 crore. The company planned to grow its business by 12.5 per cent to reach a net premium income of Rs 4,500 crore this year.

Cutting losses

Mr Ramasaamy admitted that profits were under pressure on account of a fall in premiums after deregulation of tariffs last year. However, the company was able to cut underwriting losses in some sectors, including medical insurance, he added.

Claims ratio in medical insurance was brought down to 100 per cent last year, from 121 per cent the previous year. For the current year, the claims ratio in the medical sector would be brought down to 90 per cent, Mr Ramasaamy said.

NICL, as part of its business growth, kicked off its online travel insurance policy. The online policy allows customers to directly log on to the National Insurance Web site and take overseas travel cover through an electronic payment mechanism.

This cover was launched to increase its presence in the travel insurance market, where it has a share of barely 4 per cent.

More Stories on : General Insurance | Information Technology

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rupee ends flat

Max New York Life recasts brand campaign

Kotak Life hopes to sustain 80% growth

HDFC Standard Life's AUM

NICL short-lists 6 cos for core insurance solution

Axis Bank gets reprieve in forex derivative case

Allahabad Bank expands in South

DBS Bank to launch retail banking early 2009

Marginal drop in bond prices

Call rates flat

Banks hiking merchants’ fees on card swipes

SICB depositors to take recourse to RTI

Sundaram BNP ties up with Shamrao Vithal Co-op Bank

SBI launches HNI Speed