In a move that could have a significant impact on both the UK’s motoring and financial industries, HSBC have announced that they will soon be selling their insurance arm, HSBC Insurance for an estimated fee of £68 million to the Syndicate Holding Corp.

As a motor insurer, the HSBC Insurance arm’s sale could end up impacting the prices of UK policies that are currently held.  The company stopped writing new business in 2009, which means that following the sale the HSBC will be completely removed from the underwriting sector.

The bank itself, however, is planning to continue to offer motor insurance to customers through third party insurers under their first direct, HSBC and M&S money brands.

It is expected that the deal will be completed by the third quarter of this year, and is one of a few sales of insurance subsidaries that HSBC has made in the last few years.

Whilst motor insurance will still be available, it’s recommended that UK motorists seek to find their breakdown cover from other companies that can offer a far cheaper price and service to accompany a standard car insurance policy.

To find out more from the UK motoring industries, and to see how cheap breakdown cover can be, continue to check into the Rescue My Car blog.