HSBC in bancassurance, insurance broking

Our Banking Bureau
16 August 2002

Mumbai: The HSBC group plans to get into insurance distribution through both the corporate agency as well as through the insurance broking channel.

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 company.

At present, HSBC sells insurance products of Tata AIG Life and General Insurance through a separate company, HSBC Insurance Services.

Globally, HSBC is among the top 12 insurance broking firms. In India, the group has been among the first movers in institutional distribution of insurance.