SBI General Insurance, HSBC India in bancassurance tie-up
SBI General Insurance Company Limited (SBI General Insurance) and HSBC India have entered into a bancassurance partnership for the distribution of non-life insurance products through latter’s network.
This partnership represents a significant step towards providing accessible and comprehensive insurance solutions, helping increase insurance penetration in the country.
Through this tie-up, SBI General Insurance aims to offer its insurance solutions to HSBC India’s customers across the country.
Non-life insurance products
Under this partnership, HSBC India will offer the entire suite of SBI General Insurance’s non-life insurance products including health, property, motor and travel to its customers.
Speaking on the collaboration, Naveen Chandra Jha, MD & CEO, SBI General Insurance, said, “We are delighted to partner with HSBC India, and serve their esteemed customers across the states. With our innovative range of products and the bank’s diverse customer base, we will be able to reach a broader customer base and offer them the protection they need against various risks
Together, we are committed to providing innovative insurance solutions and exceptional service to our customers”.
Sandeep Batra, Head, Wealth and Personal Banking, HSBC India, said, “This bancassurance tie-up with SBI General Insurance aligns with our commitment to providing comprehensive financial solutions under one roof and deliver unparalleled value to our customers. We look forward to serving our customers with top-notch insurance products and excellent service standards.”
The partnership will offer a wide range of insurance solutions to meet diverse consumer needs of affluent Indians across the country through HSBC India’s branch and digital network.
Customers will have convenient access to these insurance products, enhancing their overall experience and meeting their specific insurance needs effectively.
Bancassurance
Bancassurance is an insurance distribution model where insurance companies partner with banks to sell policies. Both the bank and the insurance company get to benefit from this arrangement. While the bank earns a commission from the insurance company, the insurer gains from the distribution network of the bank.
Insurance regulator IRDAI had in 2022 widely thrown open the bancassurance channel for insurers as part of its overall effort to increase insurance penetration in the country and achieve the long-term goal of ‘insurance for all’ by 2047, when the country will celebrate its golden jubilee of independence.
The regulator had paved the way for corporate agents (banks) to have distribution tie up with maximum of nine life insurers, nine general insurers and nine health insurers. Also, insurance marketing firms (IMF) can now enter into tie up with as many as six life, general and health insurers.