Page 29 - Insurance Times August 2018

beat individual performers in an organization competing desired quality improvement takes place and result oriented

against each other; transformation is also sure to occur. Initiatives of human

5. Complete preparation against the situation and resource development and manpower planning at their
corporate level are aimed at achieving the quality jobs.
compete against the rival.

Human Resource development is the key to success of any Keeping in view the changing needs of the insurance
service provider. The insurers are now facing the challenge organizations and in order to achieve the targeted
to fully involve their employees in achieving their goals. sustainable growth of the insurance company, the long term
When the employees at different levels are integrated and strategy of HR Plan needs to be formulated with the major
committed to take the organization forward, then the focal area to empower people to develop capabilities to
meet the service quality requirements of the insurance
organization.

The talent search programme within the own employees
create an enthusiasm and will definitely induce them to be
more quality conscious, update and augment their
professional skill and knowledge. We must have a positive
thinking with the strong belief that we can achieve prudent
quality management - now it is time to induce the mobility
within ourselves and rededicate ourselves for bringing glory
to general insurance organizations through quality service
to achieve the bench-marking in future days.

United India Insurance reports Rs. 1,003-crore profit in FY 18

United India Insurance Company has reported a profit after tax of Rs. 1,003 crore for the year 2017-18, compared
with a loss of Rs. 1,914 crore in the previous fiscal. In 2017-18, the underwriting losses fell by almost half to Rs. 2,542
crore from Rs. 4,444 crore in 2016-17. In FY17, the company had to make a huge technical provision at one go, and
hence, the underwriting losses were huge, which led to the company reporting a net loss of Rs. 1,914 crore. In 2017-
18, net incurred claims were lower at Rs. 12,138 crore (Rs. 12,881 crore in FY17), while expenses dropped to Rs.
2,598 crore (Rs. 2,969 crore). Combined ratio (a measure of insurer profitability) of UIIC stood at 119.77 per cent
against 136.94 per cent in 2016-17. Its investment income zoomed to Rs. 3,770 crore from Rs. 2,532 crore.

The second-largest general insurer in the country managed to take the solvency ratio to 1.54 per cent (1.5 per cent
is stipulated by the regulator) during FY18 against 1.15 per cent as of March 31, 2017. "This was achieved by mea-
sures such as underwriting control, focus on better-priced products and raise of subordinated debt of about Rs. 900
crore," said MN Sarma, CMD, UIIC.

Its gross premium income grew by 9 per cent at Rs. 17,430 crore (Rs. 16,063 crore), while net premium income stood
at Rs. 12, 861, up from Rs. 12,032 crore. Sarma admitted that company's gross premium income growth was lower
than the industry average of about 15 per cent. This was due to the decision to move away from certain group health
business where pricing was under severe pressure and that posed a threat to profitability.

28 The Insurance Times, August 2018