HSBC Insurance Brokers (India) Ltd is the first bank in the country to have receive insurance broking licence from the Insurance Regulatory and Development Authority to operate as a composite insurance broking firm.

A number of HSBC customers and affiliates of the bank have invested 74 per cent in HSBC Insurance Brokers (India) Ltd. This follows the need for the bank to conform to the IRDA regulations  -- that do not permit any foreign entity to hold more than 26 per cent in an insurance venture or broking firm.

HSBC country head and chief executive officer Niall Booker said  the bank was interested in entering insurance underwriting.

However, the foreign bank would not like to invest unless the ceiling of 26 per cent foreign stake is increased, he added.

So far as the Indian shareholding in the insurance broking arm is concerned, "it is widely spread across a number of our customers and affiliates in the country. Companies which are leaders in their own industry segment and can bring in their expertise," said HSBC Insurance Brokers (India) Ltd CEO Arup Mazumdar.

Aiming to compete with the top three global brokers  -- Aon, Marsh and Wills  -- which have set up base in the country, HSBC Insurance Brokers sees itself having an edge over other insurance broking arms in the country as "we have a relationship base, to whom we can add value," said Mazumdar.

HSBC Insurance Brokers is eyeing to offer unique products to the Indian financial services sector including expansion in the coverage under the bankers blanket bond.

"Today such policies taken by most banks in the country do not cover computer crime. This is despite the fact that all banks have gone for computerisation," said Mazumdar.

The bank's broking arm hopes to bring in such products into the country among a host of others including special covers like political risk coverage if capacity is made available for the Indian market.