Income 'actively recruiting' for its new financial advisory unit

Insurer adopts new business model as it looks at ways to grow its topline by expanding distribution abilities

- Claire Huang

Home-grown insurer Income Insurance is taking a stab at a new business model as it looks at ways to grow its topline by expanding its distribution abilities, The Straits Times has learnt.

The composite insurer is looking to be a business partner to those who want to start their own financial advisory (FA) firms, according to several market sources.

This will be done through the insurer's wholly-owned subsidiary called Income Advisory Group Holdings (IAG), that was incorporated in Singapore in early August.

As a business partner, IAG, led by Ms Grace Tng, will hold a stake in the new FA firm.

In response to ST queries, Income likened the new approach to a joint venture or a consortium.

It said the FA firms can choose to join IAG and sell either just Income's products or also offer plans from other insurers.

IAG will support the new FA firms through shared services in a number of areas including administrative matters, processes, technology and compliance. The latter two components can be costly, according to industry players.

"Such efficiencies are essential to help FA firms thrive in a highly regulated environment," the insurer said.