Prudential, VIB extend bancassurance partnership until 2036

By Phong Van   June 21, 2023 | 09:00 pm PT
Prudential Vietnam and Vietnam International Bank have extended their strategic partnership, which aims to ensure the healthy and sustainable development of the bancassurance industry in Vietnam.

Commenting on the partnership, Phuong Tien Minh, CEO of Prudential Vietnam, said: "The life insurance market in Vietnam is still young at 25 years, and the bancassurance channel has only recorded strong growth since 2016.

"The extension until 2036 is not only a testament to our excellent relationship but will also contribute to taking the Vietnamese bancassurance industry to the next level by providing the best solutions to the right customer segments to ensure sustainable growth for both parties."

The bancassurance cooperation agreement ensures the provision of high-quality consulting services and insurance contract services by establishing a minimum Persistency rate and gradually increasing it to the ideal level. To strengthen control over business activities and uphold customer conduct standards, a "Joint Customer Conduct Committee" has been established to manage, monitor, and take timely action on customer-related issues.

The agreement also includes arrangement on the proportion of the distribution of product portfolios and customers between the two companies.

Since January 1 the two companies have collaborated to initiate calls from the insurance switchboard to all new bancassurance customers, aiming to assess the quality of consultations. Monthly reports on consultation quality have been generated.

In the future, the two sides will team up to expedite staff training, coaching, supervision, and communication activities.

These efforts aim to ensure that the public has comprehensive information about insurance products.

Additionally, the companies will also continue to support customers in resolving issues, striving to provide them with the best possible experience while consistently improving service quality.

Han Ngoc Vu, CEO of VIB, said: "With our vision of becoming the most innovative and customer-oriented bank in Vietnam, VIB prioritizes offering comprehensive financial solutions to meet the increasing requirements of the Vietnamese people.

"We place great importance on providing customers with options for both hedging and ensuring long-term, sustainable financial plans.

"With this choice, we have made sufficient investments on a large scale with innovative service solutions and extensive application of technology to deliver appropriate solutions and continuously enhance service quality."

He emphasized that strengthening strategic cooperation with Prudential demonstrates the commitment of both parties to the sustainable development of the insurance market, aligning with the direction set by state management agencies.

It creates opportunities for VIB to better serve customers, expand its retail business, and realize its goal of becoming a leading retail bank, he said.

In implementing the bancassurance model, VIB has placed emphasis on ensuring the capabilities of consultants and supervising the quality of their consultations through well-defined processes and regulations based on fundamental principles.

To promptly address customer inquiries and improve consultation quality, the bank has also implemented comprehensive after-sales activities, including random calls and updates on financial milestones, among others.

As of April 2023 insurance businesses had invested an estimated VND708.4 trillion back into the economy.

The industry is projected to reach a scale of 3 - 3.3% of GDP by 2025.

In 2022 life insurance companies paid claims exceeding VND42 trillion, with Prudential accounting for 25% of the total payments at nearly VND 9,600 billion.

Claims amounting to over VND1,600 billion were paid in more than 150,000 cases involving death benefits, total and permanent disability, critical illness, and medical care.

This represented a 35% increase from 2021.

Through Prudential's bancassurance channel alone, the number of claims and payouts rose by 64% and 69%. These figures highlight the growing demand for protection among customers through banking channels.

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