SBI Life, Canara HSBC Life shares fall after DFS comments on tie-ups
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Shares of SBI Life and Canara HSBC Life Insurance fell sharply following comments from M Nagaraju, secretary at the Department of Financial Services, urging banks to avoid exclusive tie-ups with their insurance subsidiaries. SBI Life shares closed down 3.32% at Rs 1,915, while Canara HSBC Life dropped 4.36% to Rs 143.80. Analysts argue that exclusive bancassurance partnerships reduce distribution costs and enhance product ownership, suggesting that forced open architecture could increase prices for consumers. The insurance sector faces challenges with high acquisition costs impacting profitability and market stability.
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