Customers can get insured at banks and more as insurers in S’pore expand distribution channels

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.

Mr 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 (LIA) showed that bank representatives accounted for 35.2 per cent of new business premiums from January to September 2025, ahead of financial adviser (FA) representatives who accounted for 34.1 per cent, and tied representatives at 27.3 per cent. Tied representatives are contracted to a particular insurance company or financial institution and are able to offer products only from that provider.

Mr 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.

“We can get in and start distributing pretty quickly,” Mr Kamaludin said.

Maybank owns 69 per cent of Etiqa, with the remaining 31 per cent held by Belgian insurer Ageas.

Mr 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.

Mr Harpreet Bindra, CEO 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, which can range from planning for children’s education and retirement, to planning for healthcare needs and leaving behind a legacy.

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, Mr Bindra added.

This integration of insurance with financial planning and wealth management underscores its role in holistic wealth management.

Mr 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 spokesperson added that adequate insurance coverage safeguards one’s assets and loved ones from unforeseen financial shocks such as illness, accidents or loss of income.

Insurance can also be used to preserve wealth and generate steady income in retirement, or for legacy planning for the next generation, the spokesperson noted.

Reflecting the importance of insurance in a client’s wealth management strategy, OCBC Bank tried to take full control of Great Eastern in 2024 and 2025, following earlier attempts in 2004 and 2006.

Great Eastern offers life and general insurance policies, enabling OCBC to deliver a full suite of investment, insurance and estate planning solutions to its customers.

The takeover offer did not go through, but OCBC continues to view Great Eastern as pivotal to its plans to be a leading wealth management player in the region. 

Beyond the existing bancassurance partnerships, new tie-ups are emerging.

Mr Kamaludin said Etiqa partners telco Singtel to offer investment-linked life insurance. 

This business segment is growing steadily and generates at least $50 million a year, he said, adding that he expects this partnership to be one of his biggest-earning contributors in the future. 

Separately, HSBC Life has a distribution relationship with postal service provider Singapore Post for life, health and investment-linked insurance.

Online remains a nascent channel, contributing less than 5 per cent of new business premiums from 2019 to the present.

In the third quarter ended September 2025, the online direct channel accounted for 1.4 per cent of new business premiums, LIA data showed.

Etiqa uses the online channel for its Tiq brand of policies. Mr Kamaludin said these are the more standard kind of insurance policies that customers can research about and buy on their own.

Likewise, the DBS digiWealth platform

has digital tools that allow customers to do their own financial planning and investments

.

The DBS spokesperson said customers have the option of making their decisions digitally or speaking to someone in situations where they want tailored advice.

Most customers typically use both approaches. They either do their research online first and then consult their adviser, or they hear from their adviser and then find out more online.

Mr Kamaludin said that for Etiqa, almost 60 per cent of life insurance sales are done through the banks, and the rest through independent financial advisers, with minimal online sales. Life insurance includes whole life plans, endowment plans and investment-linked policies.

The situation is reversed for general insurance like personal accident insurance, car insurance or travel insurance.

Just under 10 per cent of sales come from Maybank, while online direct sales make up 10 per cent to 15 per cent, he added.

Consumers are leaving their options open when it comes to taking the digital or physical route.

For major insurance outlays, most will want to mull over it and talk face-to-face with a human adviser, Mr Kamaludin said.

Mr Benoit Meslet, CEO of Manulife Singapore, added that in this digital age, people still value having a trusted adviser.

Furthermore, most people still prefer to deal with a human when they have to apply for a claim, he added.