The London-based financial giant HSBC wants to expand its banc assurance model in Hong Kong to the rest of China, said Monday's China Daily.
HSBC Life's banc assurance model is the main insurance sales channel that HSBC employs in Hong Kong. The company plans to promote this model in Shanghai and the rest of China to better compete with domestic rivals.
Banc assurance is a word evolved from bank insurance model, or BIM, to describe the practice of selling insurance products through banks. The banks and insurance companies share commissions.
During the third quarter of this year, the bank will launch its own agency force on the Chinese mainland to enhance the bank's distribution reach, said Terry, Lo, CEO of HSBC Life Insurance Company Ltd.
China's banc assurance business enjoyed record growth in 2008, accounting for almost half of all premiums. Their shares recorded a mere 26 percent in 2003.
HSBC in June received final approval from the China Insurance Regulatory Commission (CIRC) to open its new, jointly held insurance company, HSBC Life Insurance Ltd.
The new company is jointly held with Beijing-based National Trust Ltd. Each holds a 50-percent stake. The company will have a registered capital of 500 million yuan (about 71.4 million U.S. dollars).
Source:Xinhua
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