United India hires AF Ferguson for personal insurance foray

Our Corporate Bureau

Chennai, Jan 6: United India Insurance Company Ltd, the Chennai-based public sector general insurer, has roped in international consultants AF Ferguson and Company to prepare a blueprint for its proposed foray into personal line of insurance products. The company has also decided to wind up its Hong Kong operations as it proved to be a drain on its resources.

Addressing a press conference here, Mr V Jagannathan, chairman and managing director, United India Insurance said the company has appointed international consultants AF Ferguson and Company for examining the potential of the personal lines of insurance products. The consultants would examine not only the market potential in that area but also advice United India on how to tap business.

"The options being examined include setting up of a separate department in the company or floating a subsidiary for taking care of the personal insurance business," Mr Jagannathan said.

He added that if the company is going for setting up a separate arm, it would be a 100 per cent subsidiary of United India. He said once the consultants submit the report, the management would take a concrete decision in this regard.

He said such an initiative had become imperative as competition in the general insurance sector is getting stiffer with the entry of a number of new players into this field. With an estimated middle-income population of 30 crore, the potential of the personal line of business is estimated to be around Rs 50,000 crore to Rs 60,000 crore, he pointed out.