10% of group's revenue comes from insurance. |
The Hongkong and Shanghai Banking Corporation Ltd (HSBC) is keen on setting up an insurance subsidiary in India. About 10 per cent of the British banking group's revenue comes from the insurance business. |
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"We would like to set up a subsidiary to enter both the life and the non-life insurance businesses. We are constantly talking to the regulators," said Stephen K Green, group chief executive of the firm's holding company, HSBC Holdings Plc. |
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He was recently in Hong Kong to attend the group's customary informal annual general meeting of shareholders in its previous headquarters. |
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HSBC made a headway into the Chinese insurance market in 2002 when it picked up 10 per cent stake in China's second largest life insurance company, Ping An Insurance. |
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Recently, HSBC entered into agreements to increase its stake in Ping An from 10 per cent to 19.9 per cent with an investment of $1.03 billion. |
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HSBC wants to enter the insurance business across the Asia Pacific region, said Michael R P Smith, president and chief executive officer of the HongKong and Shanghai Banking Corporation Ltd, the Asia Pacific wing of the banking company. |
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Asked if HSBC's entry into insurance is conditional on the Indian government lifting the FDI cap in the sector from 26 per cent to 49 per cent, said Smith, "We are not too worried about the FDI cap. It would be better if the cap is lifted but even otherwise we would like to enter into the manufacturing of insurance products. We are evaluating it at the moment." |
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HSBC plans to be different from the existing 14 private insurance players in India by adopting the bancassurance model. |
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"Bancassurance will be the differentiating factor for us. We are a great believer in bancassurance. When you get it right, it can be a great driver," said Smith. HSBC has 40 branches across India through which it plans to sell insurance products. |
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HSBC customers hold more than 7 million insurance policies in over 40 countries. |
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(The correspondent's Hong Kong trip was sponsored by HSBC) |
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