Keep it simple, FM tells insurers

"The needs of an ageing population are different. They not only need an insurance policy to insure their life, but meet their income needs during their retired life. They need to have sufficient income till their last breath. So, we need more insurance companies who can give better products," Chidambaram said while launching the operations of Canara HSBC Oriental Bank of Commerce Life Insurance.

 

This is the 19th life insurance company to commence operations and six more players will begin operations soon. "This is an indication of the huge interest evinced by the banking sector in increasing the insurance penetration in the country. There is a huge unmet demand for insurance."

Canara HSBC Oriental Bank of Commerce Life Insurance Company will be headquartered in Gurgaon and is capitalised at Rs 325 crore. While Canara Bank holds the majority 51 per cent stake in the company, HSBC and OBC hold 26 per cent and 23 per cent, respectively.

The company has launched eight products with a mix of traditional and unit-linked schemes and will largely focus on bancassurance.