Joint initiatives shake up insurance

January 13, 2022 | 14:43
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An increase in the conducive socio-demographic characteristics and accelerating digital adoption, correlated with a greater perception of insurance products, have all been taken into account by international and domestic insurers as reasons for their renewed interest in collaborations with Vietnamese banks.
Joint initiatives shake up insurance
Joint initiatives shake up insurance, illustration photo

Aviva Plc. completed the formal sale of its entire stake in Aviva Vietnam last week to its rival Manulife, as the UK-backed insurer continues to diminish its influence in Asia.

The pandemic’s influence on Aviva’s foreign insurance business necessitated a shift in strategy in the second half of 2020, when the company planned to completely overhaul its international operations.

This collaboration act stipulates the acquisition of Aviva Life Insurance Vietnam by Manulife Asia for the purpose of providing it with the exclusive right to sell insurance throughout VietinBank’s network for 16 years.

Bao Viet Securities Company (BVSC) anticipates that VietinBank could begin collecting upfront fee payments in 2022.

If VietinBank spreads the upfront cost over four years, the total recorded amount in 2022 should be roughly $60.9 million.

Meanwhile, Sacombank and Dai-ichi Life Insurance Vietnam struck an accord on December 27 for a greater monopoly of bancassurance based on their collaboration launch in 2017.

The two parties’ collaboration will be elevated to a new degree of commitment, corresponding with their respective capabilities and aspirations in the coming time.

“Simultaneously, the joint effort reiterates our commitment to provide the greatest possible advantages to customers who choose to engage in Dai-ichi Life insurance packaged via Sacombank,” the bank representative stated. “After more than four years, Sacombank and Dai-ichi Life Vietnam have offered superior financial services to over 540,000 clients, generating approximately $260 million in premiums. Additionally, the two parties have assisted and resolved approximately 1,300 insurance claims totalling up to $4.3 million”.

December also witnessed a slew of partnership enforcement accords between banks and insurers, as lenders are proactively resorting to non-credit income.

Insurance products have also been introduced by South Korean insurers Mirae Asset Prévoir and VietABank.

As a result of this partnership agreement, Mirae Asset Prévoir will distribute life insurance products to VietABank’s customers via a total of 97 transaction sites throughout Vietnam, including VietABank branches and transaction offices.

Since its formal launch in September, the bancassurance benefits provided by VietABank and Mirae Asset Prévoir have yielded massively positive preliminary results.

Meanwhile, with the fresh backing of FWD Vietnam and Dai-ichi Life Vietnam, HDBank will be able to distribute insurance products throughout the nation.

FWD Vietnam’s director general Huynh Huu Khang stated, “One of Vietnam’s leading joint-stock commercial banks has joined forces with us. As we continue to endeavour to change consumer views in Vietnam, the official distribution network of HDBank for FWD Vietnam is a tremendous incentive for us to broaden our operation as well as provide customers with fully integrated services via innovative and digital insurance services.”

As the pandemic enhances the greater perception of health and mortality hazards, health and personal accident insurance are anticipated to remain the dominant growth drivers. However, when domestic sectors and enterprises undertake cost-cutting measures, this might be compensated by a decrease in group health insurance.

“Digitalisation is one of the key determinants underpinning revenue expansion and optimisation at HDBank,” stated HDBank’s general director Pham Quoc Thanh. “We are striving to upgrade digital goods and services to perfect customer experience. Thus, HDBank’s clients will be able to access additional insurance options on a digitally-enabled platform via the collaborative effort with FWD Vietnam.”

As a result of renegotiated provisions, the exclusive collaboration deal between HDBank and Dai-ichi Life Vietnam was also terminated.

In a significant step forward for both companies’ commercial plans, BAC A BANK and the Military Insurance Corporation (MIC) inked a strategic collaboration, in which the bank’s clients will be able to access MIC’s comprehensive range of insurance products. Custom-made products such as vehicle insurance, house insurance, and more were developed to address customer demands.

Banks are concentrating their endeavours on bancassurance, since several have seen an excellent increase in net premium revenue. Several banks, including Techcombank, VIB, and MSB have developed digital insurance selling systems to assist minimise the time and expense associated with bancassurance sales. In other banks, commissions given directly to bank staff have also been boosted, BVSC noted.

By Lam Tien

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