EY sets 18-month timeline for merger of three insurance companies

It will also conduct a valuation exercise of the assets of the firms

Management consultant firm EY has recommended National Insurance, United India Insurance and Oriental Insurance to merge by December 2020, or within 18 months starting July.

The three insurers, under the aegis of GIPSA (General Insurance Public Sector Association), appointed EY last month to draw a blueprint for the merger plan. According to sources, after examination of all equations for the merger, including merging them with New India Assurance, EY suggested merger of the three firms as the most viable option.

The three sets of challenges identified are integration of work culture, rolling out a common software, and rationalisation of branches. In total,