group plans to get into insurance distribution through
both the corporate agency as well as through the insurance
While the bank
plans to become a corporate agent through the bancassurance
route, the broking business will be undertaken through
a separate affiliate.
A couple of weeks
ago the Indian parliament had passed the IRDA Act Amendment
Bill, which enables banks to get licensed as corporate
agents and sell insurance products through their branches.
The Bill also recognises
brokers as intermediaries, which are allowed to distribute
products of multiple companies, unlike corporate agents
who can sell products of only one life and one non-life
At present, HSBC
sells insurance products of Tata AIG Life and General
Insurance through a separate company, HSBC Insurance Services.
is among the top 12 insurance broking firms. In India,
the group has been among the first movers in institutional
distribution of insurance.
country head (personal financial services) Vivek Kudva
says there will be no conflict of interest in the bank
being a dedicated corporate agent and having stake in
an insurance broking company.
HSBC will, however,
have to rope in multiple partners since the IRDA has capped
the maximum foreign equity in a broking company at 26