Bancassurance making insurance be easier

Bancasurance giúp mua bảo hiểm dễ dàng hơn

Bancasurance giúp mua bảo hiểm dễ dàng hơn

Bancassurance is very popular in the developed countries around the world. In Vietnam, Bancassurance is tremendously growing, and Prudential Vietnam is the pioneer of Bancassurance in the Vietnam market. 

 Year 2015 marked the success of Prudential Vietnam since Bancassurance kept being the leading channel of the market. Prudential Vietnam has so far cooperated with eight large banks and its life insurance products have been thereby expanded thanks to the appearance of 650 branches of these banks, substantially Maritime, VIB and Agribank – the banks entering into the exclusive strategic cooperation with Prudential Vietnam then fetching very impressive achievements. 

With the commitments from and the exclusive strategic cooperation (signed in 2013), Maritime Bank has been the number one strategic partner of Prudential Vietnam with the growth rate of the year 2015 reaching 77% as compared to the same period of 2014. The number two strategic partner of Prudential Vietnam must be VIB with the outstanding outcomes of 120% target sales in 2015; accordingly, the revenue of VIB sharply goes up after entering in the exclusive strategic cooperation with Prudential Vietnam for the term of 15 years. The following position is belonged to Agribank, the bank marking 126% target sales in 2015. Besides the plan for expanding insurance channels to all branches and transaction offices in the Southern Area, Argibank is believed to be one of the most important partners of Prudential Vietnam in developing Bancassurance. 

Save for this exclusive strategic cooperation, Prudential Vietnam is attempting to expand its Bancassurance with new partners such as PVComBank, the new partner entering Bancassurance of Prudential and meeting 120% target sales in 2015.   

“The cooperation between Prudential Vietnam and partners [banks] in providing life insurance products is believed to be expanded in the upcoming periods since these two lines of business (i.e. banking and insurance) tend to proximity in the development trajectory. In fact, the cooperation between banking and life insurance not only contributes to the development of life insurance of the whole system yet also reinforces the relationships between the banks and their clients and thereby helps the banks to further meet the financial service demands of its clients”, said Mr. Wilf Blackburn, the General Director of Prudential Vietnam. 

According to the specialist of life insurance sector, among the insurance product channels already operated in Vietnam such as agencies, telemarketing, worksite, etc., Bancassurance is the most important channel with strong growth potential, especially in the current advantageous period. In addition, if the legal framework is already improved, the growth or revenue of insurance premiums and the enhancement of service quality are the key objectives of the majority of banks. 

It is known that in many regional countries such as Thailand, Malaysia and Hong Kong, the contributions of Bancassurance in the total revenues of life insurance products strongly go up from 10% in 2000 to 30% - 50% in the following 10 years. Meanwhile, the contribution of Bancassurance in Vietnam is fairly humble upon the fact that the banks here are just beginning to get familiar with Bancassurance. Nonetheless, there are more and more banks showing interests in and entering Bancassurance. In 2016, Prudential Vietnam keeps seeking new potential partners to develop this Bancassurance channel so as to bring more added values to its clients and partners.

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