DBS overtakes long-time leader OCBC in bancassurance

Singapore

INSURANCE sales in Singapore hardly make the headlines but last week's bombshell by DBS that it became the number one bancassurance bank in Q1 2015 had everyone sitting up. Not least OCBC Bank, which pioneered the business and had hogged the top position for 14 years.

At its second-quarter results released on July 27, DBS showed a slide which said its bancassurance has a 35 per cent market share in Q1, making it the Singapore market leader. Annual premium sales rose 32 per cent year-on-year.

Those present at the results briefing wondered if they heard right, prompting someone to ask DBS chief executive Piyush Gupta if the bank had beaten OCBC/Great Eastern. He replied "Yes".

For the next few days the folks at OCBC were said to be rather "upset" and when it was the bank's turn to release its Q2 results on July 31, chief executive Samuel Tsien found himself having to defend the bank's drop in market share. Its market share was 29 per cent in Q1. He said it was due to the lack of new single premium products launched by its insurance unit Great Eastern and the bank's focus was on regular premium…