Employees Favour Merger of 4 State-Owned General Insurance Companies
Updated On Oct 27, 2020
As per a report by Business Standard, the employee unions of four state-owned general insurance companies are in favour of bunching up these insurance companies, viz., the United India Insurance Company, Oriental India Insurance Company, New India Assurance and the National Insurance Company. This is because the market shares of these companies fell below the private peers and the employee unions suggested that the merger of these four companies will help them reclaim their market leadership. They also believe that the merger will end competition among them and will lead to the maximum utilisation of a large workforce of these public sector companies and their unification with digital capabilities to put a step forward into rural areas.
The government has been vetting the initial merger of Oriental Insurance, United India Insurance and National Insurance following a takeover by New India Assurance, as informed by a state-owned insurer. Other options discussed earlier included creation of two public sector general insurance companies, apart from the merger of three companies, stated an official.
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