SINGAPORE: Banks are one of the biggest distribution channels for insurers, under a tie-up known as bancassurance, where insurance products are sold to the bank’s customers.
Customers benefit as they gain access to a complete suite of services, from wealth management to insurance advice.
Ishan Sarkar, head of wealth and premier services at HSBC Singapore, said that by incorporating insurance protection into a broader wealth strategy, clients are building their wealth while safeguarding it at the same time.
But even as bancassurance remains core, insurers are also exploring other touchpoints to reach more customers.
The latest report from the Life Insurance Association showed that bank representatives accounted for 35.2% of new business premiums from January to September 2025, ahead of financial adviser representatives who accounted for 34.1%, and tied representatives at 27.3%.
Tied representatives are contracted to a particular insurance company or financial institution and are able to offer products only from that provider.
Kamaludin Ahmad, group chief executive officer of Etiqa, said banks are an important distribution channel for Etiqa, as the insurer is still relatively new to Singapore.
With Maybank, Etiqa has a ready customer base. Maybank owns 69% of Etiqa, with the remaining 31% held by Belgian insurer Ageas.
“We can get in and start distributing pretty quickly,” Kamaludin said.
Kamaludin added that Etiqa is able to draw on information about Maybank’s customers to personalise its insurance offerings to their needs.
In a similar vein, HSBC customers get insurance solutions that are tailored to their needs from HSBC Life, the bank’s wholly owned subsidiary.
Harpreet Bindra, chief executive officer of HSBC Life Singapore, said the bank representatives know their clients and understand their financial situation and aspirations. They are thus able to recommend insurance solutions that align with the clients’ financial goals.
“The close relationship has also opened the doors for HSBC Life to the private banking space, where it serves high-net-worth and ultra-high-net-worth customers,” Bindra added.
This integration of insurance with financial planning and wealth management underscores its role in holistic wealth management.
Sarkar said that even the most well-structured portfolio will be hit by unforeseen events if the right protection is not in place.
Insurance enables clients to reduce their exposure to such uncertainties, while ensuring that their financial goals, family, lifestyle and legacy are protected.
A spokesperson for DBS Bank said that protection is the foundation of any sound financial plan. DBS has strategic partnerships with Manulife in life insurance and Chubb in general insurance. — The Straits Times/ANN
