PSU insurers to digitize motor policy settlement to stay in race

State-run general insurers Oriental Insurance, National Insurance, New India Assurance, and United India Insurance, are completely digitizing their motor insurance policies to prevent ceding market share to private sector rivals.

According to people aware of the development, these general insurers, who are part of General Insurance Public Sector Association (GIPSA), are empanelling digital service providers (DSPs) as their agents to process and manage motor insurance policies, with claims up to Rs. 50,000.

The four insurers are embracing a new digital approach to boost an essential part of their insurance operations and free up time to concentrate on more lucrative policies. With their market share in the motor insurance sector hovering around 34% and on the decline, the digital drive is expected to help reinvigorate this segment. Over the past decade, the four insurers saw their motor insurance business lose ground to private sector rivals who had less than half the market in 2009.