Insurance firms step up recruitment to push bancassurance sales

In recent months insurance companies like AIA and Prudential have been recruiting hundreds of sales staff to work at VietinBank, VPBank, Maritime Bank and other similar institutions.

A spokesperson for an insurance company which has exclusive partnerships with several banks said that the company plans to increase recruitment of bancassurance staff by 25 percent this year from last year.

Industry insiders said that the recruitment increase is happening as banks seek to increase revenues from selling insurance products as credit growth has been hit by the Covid-19 pandemic. Vietnam’s credit growth was 2.45 percent in the first half of 2020, the lowest since 2016, according to the General Statistics Office.

Banks, meanwhile, have seen their revenues increase thanks to bancassurance. VIB, for example, saw revenues from insurance in the first half rise 23 percent year-on-year to VND536 billion ($23 million).

Ngo Trung Dung, deputy chairman of the Insurance Association of Vietnam, said that life insurance sales in Vietnam via bancassurance rose 20 percent year-on-year in the first half of 2020.

Although lenders like Techcombank and Sacombank are using their own staff to sell insurance products, some experts suggest the use of professionally trained insurance company staff more professionally trained to ensure more success in sales.