Oriental weighs options in resizing network

New Delhi: As per the government's direction, the country's four state-run general insurance companies have already begun the process of cutting the size of their offices across almost all zones. The insurers are relying on three key performance indicators (KPIs) -- profitable growth, digital issuance of policies and cost minimisation-to decide on merger or closure of offices.

The Department of Financial Services (DFS) in the finance ministry had asked all public sector general insurers to cut down their branches, keeping their profitability in view.
Early this month, Oriental Insurance Company's (OIC) chairman and managing director Anjan Dey had an interaction with the members of the OIC Officers' Association on the KPIs.

According to sources, Dey asked the officers to identify profitable products and lines of business, besides improving the claim settlement ratio. Dey also introduced a new concept of business development officers (BDO), by which 50 per cent officials will focus on marketing the insurer's products.

Vishnu Aggarwal, general secretary of the association, asked for a transparent and consultation-based system to identify the offices for closure/merger.

According to him, no profit-making office should be closed. "Also, the offices which are far away from another office and have the potential to improve should not be closed/ merged for proper visibility of the company."