Annual Rep. 2008-09.pmd - The New India Assurance Co. Ltd.

efo v³et Fefv[³ee SM³eesjvme kebÀ. efue.The New India Assurance Co. Ltd.Estbd. 1919Directors’ ReportEmployee perception and feedback, Customer needs and impression and International benchmarksthrough a combination of detailed internal assessment and external situational analysis.The key enablers in the reengineering process were identified as the People, Processes/IT, Brandingand Organizational structure. The major lines of businesses were identified as Motor, Health, Otherpersonal/Rural lines and Corporate businesses. The marketing channels, which will drive the growth,have been identified as agents, brokers, bancassurance and Auto Tie-up channel.A prioritized roadmap, consisting of initiatives in three waves, was developed by the New Energy team,with a tight monitoring programme.Phase II initiativesAgents Performance Enhancement Program (APEP) to re-energize agent channel through betterdevelopment, support and aligned incentives.Health and Third Party Administrator (TPA) management to improve health profitability throughhospital relationships and improved TPA performance.Phase III initiativesPerformance Management System (PMS) & Human Resources (HR): Overall structure of PMSand incentives charted, with targets and action plan.Motor Third Party (TP) claims management process redesigned for reducing payouts and decreasingbacklog of TP claims.Cash Management System (CMS) & Investments process improved, for driving higher returns,reduction in float, streamlined process and better vendor negotiation/ management.These New Energy initiatives represent significant change in the Company’s performancetrajectory. Their implementation is already producing a positive impact on the Company’s customerservicing, premium accretion and profitability. Simultaneously, effective measures designed toboost the morale of the employees, is expected to translate into improved performance throughthe organisation.VII.FIRE & ENGINEERING BUSINESSIn the Fire portfolio, the company has achieved a growth of 4% during the year 2008-09 in spite ofintense competition in the Insurance Market following free pricing. This was possible through company’sreliable service, building customer confidence and spread of market goodwill.The total incurred claims ratio was higher at 89.5% (58.55% for the previous year), which was mainlydue to the terrorism claims arising out of Mumbai Terrorist attack. The incurred claims ratio (excludingterrorism) of the Fire Department for the current year would have been 74.6%.The Company responded proactively to the grave national calamity and handed over the first onaccount payment of Rs. 25 crores to M/s Oberoi Towers/Trident Hotels within 16 days of the terrorismattack.The Company co-sponsored a seminar on terrorism at Mumbai with leading Reinsurance Broker,M/s. J. B. Boda & Company, shortly following the attacks on Mumbai, to spread the knowledge andawareness on terrorism Insurance and clarify various issues of concern with the insuring public.16