Indian insurance stocks drop on report of regulatory concerns over dependence on parent banks
** Indian insurance stocks HDFC Life HDFL.NS, SBI Life SBIL.NS and Max Financial MAXI.NS fall ~6% each
** SBIL, HDFL top Nifty 50 .NSEI laggards by pct
** IRDAI, India's insurance regulator, may consider putting a cap of 50% on insurers' parent bank's share to insurers' total bancassurance business, CNBC-TV18 reports , citing sources
** Bancassurance refers to arrangement between a bank and insurer, allowing the latter to sell its products to bank's clients
** IRDAI did not immediately respond to Reuters' requests for comment
** HDFL, Max Life derive about 60%-70% of their annual premium equivalent (APE) from bancassurance, mainly through their parent banks
** ICICI Prudential Life ICIR.NS only has 29% APE in bancassurance, while Life Insurance Corp of India LIFI.NS has a bancassurance exposure of just 4%
** LIFI shares up 1.8%, while ICIR rises 0.7%
** Indian finance minister and IRDAI chairperson had advised banks to resolve issues in bancassurance practices to prevent mis-selling
Reporting by Bharath Rajeswaran in Bengaluru
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