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HSBC launches Taiwan insurance unit
OPPORTUNITY:
The British bank said that there is huge potential for growth in Taiwan's insurance market, with average sums assured much lower here than in Japan and the US
By Lisa Wang
STAFF REPORTER
Friday, Sep 28, 2007, Page 12
HSBC Holdings PLC, the biggest bank in Europe, yesterday launched its Taiwanese insurance unit, the latest in a series of moves to strengthen its presence in the Asia-Pacific region.
With aging becoming a critical issue people face today, the need for protection and support for their children's education, their health and well-being as well as retirement planning are increasing, HSBC said.
"Asia is aging much faster than the West," John Holden, managing director of HSBC Life International Ltd Taiwan, said yesterday.
In Taiwan, the average sum assured is NT$1.28 million (US$39,000) much lower than NT$2.16 million average in Japan and NT$5.08 million average in the US, HSBC said.
"This provides a huge growth potential -- an opportunity we intend to grasp by extending our bancassurance expertise to reach out to Taiwan's growing insurance market," Holden said at a press briefing.
HSBC will have to compete with local insurance firms such as Cathay Life Insurance Co (瓣关) and Shin Kong Life Insurance Co (穝关), as well as foreign companies, including ING Antai Life Insurance Co (ING关), Allianz Taiwan Life Insurance Co (羛关), Aviva Taiwan, Prudential Life Insurance Company of Taiwan (玂紈獺关) and MetLife Taiwan Insurance Co (常穦瓣悔关).
HSBC's Taiwanese life insurance unit plans to increase its workforce to 46 from 36, Holden said.
Up to now, HSBC has been collaborating with Nan Shan Life Insurance Co (玭关), a local subsidiary of American International Group Inc (AIG), cross-selling products through each other's channels.
HSBC yesterday also said in a statement that it has received approval from the China Insurance Regulatory Commission to form a life insurance joint venture with Beijing-based National Trust Ltd in China (瓣チ獺癠щ戈).
HSBC would hold no more than 50 percent of the life insurance venture, which would have 500 million yuan (US$66.5 million) in capital, said David Fried, Regional Head of Insurance, Asia-Pacific. The new company is expected to start operations within 12 months, Fried said.
Elsewhere in Asia, HSBC said it planned to form a joint insurance company with India's largest state-owned banks, Canara Bank and Oriental Bank of Commerce.
HSBC also said it intended to acquire a 10 percent stake in Vietnam Insurance Corp (Bao Viet) to become the sole foreign strategic partner of Vietnam's leading insurer.
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