New Delhi, 20 July-2014, IANS: World Bank group President Jim Yong Kim will be on…
Economic Desk: Canara HSBC Life Insurance has been focusing on their distribution through the network of all the three banks associated in the life insurance joint venture. All the 3 banks collectively have a network of over 4400 branches. The Life Insurer sourced 98.77% of its total policies which contributed 99.30% of its total premium collection from the Bancassurance channel as on September 2011. Canara HSBC Oriental Bank of Commerce life insurance company in India offering best life insurance, ULIP plans, individual insurance plans, group insurance a few other insurance related products. Canara HSBC Oriental Bank of Commerce Life Insurance Company is a joint venture between Canara Bank, Oriental Bank of Commerce and HSBC Insurance. The company started operations in India in 2008. Collectively the company has a network of 4,400 bank branches.
Canara Bank is owned by the Government of India and has a century old history of banking in India. It is one of the largest banks in India with a amazing network of more than 2800 branches across the length and breadth of India. The HSBC Group, headquartered in London, is one of the world’s largest banking and financial services organizations with business in more than 81 countries across the world. The HSBC group’s presence in India also dates back to more than a century. HSBC Bank is one of the oldest and leading private sector banks in India. Oriental Bank of Commerce (OBC), is also a Government of India’s undertaking with a network of more than 1526 branches making it among the larger banks in India. Overall this partnership has got a trustworthy and historically established background to run the insurance business.
The revenue numbers of life insurance companies were down in 2011-12 as compared to the previous year. Due to the revised ULIP guidelines, life insurance companies saw a dip in sales of one of their most profitable products.
Few weeks back, New York life announced their exit from the life insurance joint venture Max New York Life. New York Life sold their 26% stake to Mitsui Sumitomo for close to Rs.2,370 crores. The valuations clearly suggest that life insurance market is hugely untapped and is going to be a big market in the near future. However, the important thing for insurers is to stay lean and continue to build the foundation in such challenging times.
The company in its current form operated on a pure Bancassurance model. Having a large customer base of 3 banks, is in itself a huge base to start selling insurance products. Unit Linked Insurance Plan (ULIP) is a life insurance policy which provides a combination of risk cover and investment. In a Unit Linked Policy, the investment risk is generally borne by the investor.
Investment returns from ULIP may not be guaranteed but it carries higher opportunity to grow your wealth.