Manulife Vietnam and Ho Chi Minh City-based Asia Commercial Bank have signed a bancassurance partnership agreement on 9 September 2019.
The insurer will distribute life insurance products through the bank’s Privilege Banking, meeting the diversified needs of premium customers.
The first wholly foreign-owned life insurance company will provide two key types of life insurance to ACB’s customers in the initial roll-out of the partnership. They are the unit-linked insurance plan and an enhanced critical illness product.
Manulife Vietnam said that the partnership is part of its strategy to meet the increasing demand for life insurance in the Vietnamese market, especially among high-income customers.
Mr Koh Hoe Shin, Chief Partnership Distribution Officer at Manulife Vietnam, said: “Asia Commercial Joint Stock Bank is considered one of the leading joint stock commercial banks in Vietnam with a nationwide physical network and a wide range of services. We are happy to have a partner who shares a common mission with us to be the most customer-centric company in the industry.”
Mr Tu Tien Phat, Deputy CEO, ACB, said that both the organisations’ experience in the market gives the partners a deep understanding of their clients’ unique financial situation to better cater to their evolving needs throughout their lives.
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ACB has a nationwide branch network of 365 branches and transaction offices, and more than 15,000 employees.
ACB is estimated to have earned VND350bn from bancassurance in 1H2019, 2.5 times higher than in the corresponding period of 2018. In 2019, bancassurance is expected to bring revenue of roughly VND600bn for ACB, three times higher than last year.
Analysts from the Saigon Securities Incorporation (SSI) forecast that insurance premiums through bancassurance will grow by about 30-40% this year. Bancassurance will also become one of the most preferred sales channels of the insurance market, contributing 14% to total insurance premiums, reported Vietnam News.
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