Mumbai: In their bid to take on rising competition, public sector general insurers have unveiled a succession planning by promoting their young officials to the post of general managers.
In a recently concluded promotion exercise, 21 deputy general managers were promoted as general managers.
General manger is an important post in a public sector general insurance company and future CMDs of the industry will be selected from among these newly-elevated officials.
At the public sector general insurance space, GMs are No 2 in ranking and are equivalent to executive directors at state run banks.
The largest player New India Assurance has elevated seven of its deputy GMs, while United India and Oriental Insurance promoted five each. It was followed by National Insurance and GIC Re, which promoted two each.
In the latest promotional exercise, many officials at GIC Re, New India Assurance, United India Insurance, National Insurance Company, Oriental Insurance, with long years of residual service, have been promoted as general managers.
"We have promoted two DGMs to GMs. While one has been transferred on promotion to Oriental Insurance, another has been retained at GIC Re itself. Similarly, we will be getting two newly-promoted GMs from United India, while one GM will be joining the us from New India shortly," GIC Re acting chairman and managing director Sanath Kumar told PTI.
"We have already put in a proper succession planning in place as we have elevated people of comparatively younger age-group who may take over as CMD in future too," he added.
Out of the 39 candidates who had appeared for the interviews, 21 have been promoted as GMs.
"We have promoted people through two channels --seniority channel and fast track channel. While people have been promoted because of their seniority, we have also promoted young people through fast track channel. These younger lots will be groomed in such a way that they are able to take over within two-three years from now," a senior National Insurance official said.
"Of course, there is a little scarcity of senior people within the organisation. So, we will go in for a mix of old generation with young leaders to begin with. However, within next few years, you will see more and more young people taking over the senior people within the organization", he added.
Two posts of chairman and managing directors will fall vacant in 2016 when Milind Kharat of United and AK Saxena of Oriental retire in June and July 2016 respectively. The Agriculture Insurance Corporation will be headless soon if the incumbent PJ Joseph gets appointed as a member (non-life) at Irda.
The finance ministry has already completed interviews to fill up two posts of CMDs at GIC Re and New India Insurance.
