The Hindu Business Line : United India sees potential in rural, semi-urban areas

The United India Insurance Company is gearing up to face competition in the wake of opening of the sector to private players and it is engaging a Boston consultancy group for the purpose, according to Mr G. Srinivasan, the Chairman and Managing Director.

In an interview here, he said, “We have taken up a project, UNI Surge, which envisages change in the method of operation, organisational structure, better customer care and strengthening the finances”.

During the first half of the current fiscal, said Mr Srinivasan, the company had emerged first among the four public sector insurance companies in terms of growth. “We have closed our accounts by May 12 — 45 days ahead of the previous year — a record by any standards,” he claimed.

The annual general body meeting was held before June 30.

He said the company would strive to provide cost-effective products and adhere to international benchmarks by introducing core insurance solutions at all its 1,100-odd branches shortly. The process would be completed by mid-2009.

Mr Srinivasan said the insurance market had to be tapped in semi-urban and rural areas. Quoting a study, he said the non-life insurance industry, which was worth Rs 28,000 crore last year, would grow to Rs 1,00,000 crore by 2015.

On the decision of the Union Cabinet to raise FDI cap in the insurance sector from 26 per cent to 49 per cent, he said it would bring in new players. The number of players in the sector would go up to 50 in the next three years.