New India hires Boston in revamp bid
The exercise is aimed at retaining the number one position and increasing its market share in a decontrolled environment. The non-life insurance sector is scheduled to be completely freed of any price controls by the regulator in the next couple o...
By Debjoy Sengupta, TNN |
KOLKATA: New India Assurance (NIA), the largest Indian general insure, has appointed Boston Consulting Group (BCG) for guiding it on a transformation exercise that will include business as well as organisational restructuring. The exercise is aimed at retaining the number one position and increasing its market share in a decontrolled environment.
Confirming the development, NIA chairman & managing director B Chakrabarti told ET: “BCG is on the job. They are in the process of preparing the report, on the basis of which we will implement the transformation exercise.”
The non-life insurance sector is scheduled to be completely freed of any price controls by the regulator in the next couple of months. From April 2008, this segment will be allowed complete freedom — the freedom to lay down terms and conditions for polices. “We are preparing to face competition in the short as well as in the long run. The business transformation, including process restructuring initiative, is a part of it,” a senior NIA official said.
“While NIA has been able to maintain its leadership in spite of the entry of private players, the company wishes to equip itself to face the challenges of the future in a better way and maintain its undisputed leadership in the years to come,” said the official.
NIA’s current initiative will focus on increasing its market share and retain leadership. It will include restructuring, changes in marketing strategy, improvements in product development and channel distribution, bridging skill gaps and fine-tuning human resource as well as process reengineering. The consultant will develop ways and strategies to achieve these goals and help NIA implement them. Additionally, it will lay down an annual business plan for every year till 2020.
According to the expression of interest (EoI) floated by NIA for appointing the consultant, the process will be implemented in two phases. In the first phase, BCG will take a critical look into the existing systems, organisation philosophy, strategies, practices, work culture and suggest changes, improvements and corrections.
After the approval of the strategy, BCG — in the second phase, will help the company in implementing the strategy in areas like organisational restructuring, IT implementation, HR developments and enrichment, marketing strategy and business planning.
In 2006-07, NIA registered a Rs 6,200-crore premium income, of which Rs 5,000 crore was from India and around Rs 1,200 crore from 25 branches in various countries. The company has a network of 1,069 offices, with more than 20,000 employees, spread across 26 regions.
Confirming the development, NIA chairman & managing director B Chakrabarti told ET: “BCG is on the job. They are in the process of preparing the report, on the basis of which we will implement the transformation exercise.”
The non-life insurance sector is scheduled to be completely freed of any price controls by the regulator in the next couple of months. From April 2008, this segment will be allowed complete freedom — the freedom to lay down terms and conditions for polices. “We are preparing to face competition in the short as well as in the long run. The business transformation, including process restructuring initiative, is a part of it,” a senior NIA official said.
“While NIA has been able to maintain its leadership in spite of the entry of private players, the company wishes to equip itself to face the challenges of the future in a better way and maintain its undisputed leadership in the years to come,” said the official.
NIA’s current initiative will focus on increasing its market share and retain leadership. It will include restructuring, changes in marketing strategy, improvements in product development and channel distribution, bridging skill gaps and fine-tuning human resource as well as process reengineering. The consultant will develop ways and strategies to achieve these goals and help NIA implement them. Additionally, it will lay down an annual business plan for every year till 2020.
According to the expression of interest (EoI) floated by NIA for appointing the consultant, the process will be implemented in two phases. In the first phase, BCG will take a critical look into the existing systems, organisation philosophy, strategies, practices, work culture and suggest changes, improvements and corrections.
After the approval of the strategy, BCG — in the second phase, will help the company in implementing the strategy in areas like organisational restructuring, IT implementation, HR developments and enrichment, marketing strategy and business planning.
In 2006-07, NIA registered a Rs 6,200-crore premium income, of which Rs 5,000 crore was from India and around Rs 1,200 crore from 25 branches in various countries. The company has a network of 1,069 offices, with more than 20,000 employees, spread across 26 regions.
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