Taking cue from the talks and decisions so far made regarding merger of public sector banks, we can just make a few guesses.
As of now the Insurance companies four different geographical prime locations of this country, it seems the merger of all into one entity a distant one. As of now the private insurance players are not so well spread across the country, nor are they in such a capacity to outshine the public sector companies, I do not see any such chance of merger in the immediate future. The public sector insurance companies are doing rather well in the field.
In case (by any probability) there is going to be a merger, then I have the following points in mind.
1. The merged monolith entity will be having enough funds that it can make the insurance premia more favourable for insurers.
2. The overlapping branches have to be closed and staff re-deployed by opening branches in non-presence areas.
3. There is a chance that by its own sheer weight, lethargy may set in and will lack competitive spirit and thus lose in the long run.
4. Or more trimming may be done and more modernisation and cost reduction by reducing employment and agency arrangement and moving maximum to online insurance transactions. That can help image and also help insurers.