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kulman
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   Posted: 13/Dec/2007 at 3:58pm |
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Greedy banks could hamper the growth of bancassurance, one of the fastest-growing distribution channels for insurance products.
The world’s largest reinsurer, Swiss Re, has said since insurance is not a part of banks’ books, some of them regard selling insurance as opportunistic and do not have incentives to nurture this business.
Insurers in India said banks push products with high commissions and even missell them.
There have been several instances where private and foreign banks have marketed unit-linked insurance plans as ‘investment schemes’ with an add-on cover.
According to Swiss Re, in India bancassurance is expected to respectively account for 13% and 15% of life and non-life business in the next five years. The report also talks about a trend, where banks are moving to distribution of insurance policies from multiple companies rather than sticking to one firm.
In India, banks have begun to understand the value of their distribution networks and are discarding existing distribution agreements and entering into insurance joint ventures on their own. They are also keen to distribute policies of third parties to increase their fee income.
Despite the challenges, Swiss Re is optimistic on the future of bancassuarance.
Also, the imminent growth in healthcare and pension business is expected to open up new distribution opportunities for banks in insurance.
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Edited by kulman - 13/Dec/2007 at 3:59pm
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Life can only be understood backwards—but it must be lived forwards
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kulman
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Posted: 13/Dec/2007 at 8:26am |
HSBC looks to India, emerging markets for 60% of group’s biz
| The Indian arm of the bank is hiring an additional 5,000 people in 2008. The current staff strength of the lender stands at 31,000.
Flockhart sees HSBC in India catering to the middle class which has “more need for banking services.” He said India has “good demographics” and HSBC will be present in every aspect of retail banking to cater to this segment of the population.
HSBC in India is not ruling out the possibility of “an acquisition of a local brokerage firm, given the price and opportunity is right for the bank,” Flockhart said. He also sees HSBC gaining strength in areas such as asset management and insurance.
Flockhart is happy with the organic growth in its consumer finance business that the bank launched in India about 18 months ago. Called Pragati Finance, the plan caters to what the bank defines as “near- prime category” and gives small-ticket loans to those who have not had access to formal credit. Flockhart is optimistic about this business in India and said there are no parallels to be drawn from the sub-prime crisis in the developed markets such as the US.
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Life can only be understood backwards—but it must be lived forwards
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basant
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Posted: 13/Dec/2007 at 9:14am |
They had a 15% stake in Axis Bank which the RBI used its diktat to reduce it below 5% sometime last year.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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kulman
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Posted: 13/Dec/2007 at 11:06am |
Just read that HSBC has won bid to take-over a Taiwanese bank.
And more on HSBC....their Head (equities) Anish Zaveri has resigned to join Antique Broking.
Edited by kulman - 13/Dec/2007 at 11:07am
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Life can only be understood backwards—but it must be lived forwards
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basant
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Posted: 13/Dec/2007 at 11:34am |
| Just read that HSBC has won bid to take-over a Taiwanese bank |
What market cap was deal done at?
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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kulman
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Posted: 15/Dec/2007 at 10:47pm |
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“We believe that the Indian HNI market is under-penetrated. Most conservative estimates indicate a size of $50 billion in terms of investable assets, and our estimate suggests that private bankers have tapped just about a fifth of this,” Satya Narayan Bansal, chief executive for Barclays Wealth, India, explaining the rationale for Barclays Wealth’s entry into India. Globally, the firm manages assets worth Ł126.8 billion.
Barclays Wealth hopes to start full-fledged operations in India by the middle of 2008
On this last point, of succession planning*, Indian laws have not been too favourable for private bankers, with the Indian Trust Act being rather archaic.
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*succession planning....I guess it's another way private bankers earn fees in the West. What does it mean....to ensure that Sr. Mungerilal's son also becomes Mungerilal Jr?
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Life can only be understood backwards—but it must be lived forwards
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Mohan
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Posted: 15/Dec/2007 at 1:32am |
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Exactly,
Estate planning as its called in the US is a moneymaker for the Financial advisers and attorneys. Estate taxes is an election issue in the forthcoming elections next year.
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Be fearful when others are greedy and be greedy when others are fearful.
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kulman
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Posted: 19/Dec/2007 at 10:17pm |
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Deutsche Bank on Tuesday said it has increased its capital by Rs 2,155 crore to expand the groups' operation in the country.......making it among the highest capitalised foreign banks...
Commenting on capital infusion Gunit Chadha, chief executive officer of Deutsche Bank (India) said, "we have tremendous confidence in India and the fresh capital will allow us to offer greater local balance sheet financing for our corporate, institutional and retail clients."
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