Oriental, United India go for revamp
Oriental Insurance Company (OIC) and United India Insurance (UII) have separately decided to appoint Boston Consulting Group (BCG) to help in their business transformation exercises.
By Debjoy Sengupta, TNN |
KOLKATA: Oriental Insurance Company (OIC) and United India Insurance (UII) have separately decided to appoint Boston Consulting Group (BCG) to help in their business transformation exercises. This is a part of the insurance companies’ initiative to shed their old public sector image for a new age one and to grab a larger market share in the detariffed regime, where rates are expected to drop and competition turn fierce. BCG will be appointed to formulate road maps and strategies that OIC and UII will adopt over the next 10-15 years.
“At OIC, we have selected BCG as the consultants for the process. They will develop an overall strategic and business plan, appropriate organisation design and define requisite functional restructuring including necessary human resource interventions. It will also develop an action plan for implementation,” OIC chairman and managing director M Ramadoss told ET.
“BCG is slated to submit the report in the next six months, following which we will embark on the restructuring exercise. The consultant will develop an eight-year business plan for the company, in line with the overall strategic direction supported by annual plans. Additionally, it will also articulate a key business plan till year 2015,” Mr Ramadoss added.
UII, the second-largest general insurer, has decided to transform itself into a vibrant and customer-friendly insurer through a streamlined operating model. BCG will help UII hold on to its market share and compete with private insurers working with overseas expertise.
Confirming the development, a senior UII official said: “This exercise will be undertaken with the advice of the global consultant who will also develop a vision for the company up to the year 2025.”
As many as 13 parties had shown interest in UII’s restructuring programme. These include PricewaterhouseCoopers, IBM Business Consulting, KPMG, AT Kearney, Watson and Wyatt, Ernst & Young, McKinsey and Boston Consulting Group.
“This selected consultant will also advise UII on the parameters for market leadership in line with global practices,” the official said.
According to UII officials, BCG will also suggest new areas for diversification and domestic and global expansion strategies.
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