Bank insurance model booms

15:11 | 05/01/2017 Economy

(VEN) - The bank insurance model (bancassurance) is currently a flourishing trend in the financial market. The market has witnessed cooperation between banks and insurance companies in order to exploit each other’s strengths, while adding more value to customers.  

Sales of insurance products through banks have become more popular. Numerous commercial banks such as Vietinbank, BIDV, Vietcombank and Agribank have associated with foreign insurance companies or self-invested in the establishment of insurance companies for many years to sell its products to customers.

Cooperation between banks and insurance companies aims at exploiting each other’s strengths. Banks or insurance companies entered into cooperation with many partners to develop insurance products in the previous period, but now the exclusive model has been clearer.

The Vietnamese financial market witnessed exclusive business cooperation between Dai-ichi Life Vietnam and LienVietPostBank in November 2016. Within five years, Dai-ichi Life Vietnam will be the only partner to provide life insurance products through LienVietPostBank’s sales channel.

The National Citizen Bank (NCB) also connected with the Prevoir Vietnam Life Insurance Co., Ltd. through exclusive cooperation agreement in earlier December 2016. The two sides will jointly offer attractive packages on interest rates and insurance products in order to optimize the profitability and maximize the benefits for customers.

NCB Deputy Chairwoman of the Board of Directors Tran Hai Anh said, “The two sides will serve all the needs of customers in terms of financial and banking services, and insurance. This partnership will help NCB fully meet four key services, including lending, transaction, investment and insurance, and bring customers the most effective and diverse products.” According to Prevoir Vietnam Chairwoman of the Board of Directors Patricia Lacoste, cooperation agreement with NCB will create favorable conditions to help access to many customers, in accordance with Prevoir Vietnam’s business development strategies and ambitions after more than 10 years of participating in the Vietnamese insurance market.

Eximbank and Generali Vietnam also signed exclusive contract, or ABBank announced the signing of cooperation agreement to implement the bank insurance model within 15 years with the FWD Group’s Great Eastern Life Assurance Company.
A boom of cooperation agreements between banks and insurance companies is expected to help increase the proportion of revenues. According to financial experts, bancassurance is an inevitable trend, contributing to diversifying products and services, increasing service charges and expanding the scale of customers of the two parties.

LienVietPostBank General Director Pham Doan Son:

The signing of exclusive cooperation agreements between banks and insurance companies will bring practical benefits.

Banks will have additional opportunity to provide services for partners and their customers, while insurance companies will be

able to sell its products to the bank’s client base.

Duy Minh