Big is beautiful: Merger of PSU general insurance companies to unleash economies of scale

Government is working for consolidation of public sector general insurance companies. General Insurance: The Union government’s proposal to merge public sector general insurance companies will not only lead to consolidation in the market but it will also help the government in meeting its disinvestment target, said stock market and finance sector experts. The government is exploring two options, the first option is to allow New India Assurance to acquire other companies like ONCG acquired HPCL in 2018. In this case, New India Assurance can be allowed to acquire one or two companies like United India Insurance, National Insurance and Oriental Insurance Company Limited. Another option before the government is to merge these companies to create a large public sector giant on the lines of LIC. While there is unanimity over the move but experts are divided over the route to be adopted by the government because both the options have their own advantages and disadvantages.

For full report :Big is beautiful: Merger of PSU general insurance companies to unleash economies of scale

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