The tie-up between Prudential Vietnam and one of its fastest-growing banks is part of a long-term strategy to take advantage of the bancassurance channel
The deal with SeABank marks the ninth bancassurance partnership formed by Prudential in Vietnam (Credit: SeABank)
Prudential is looking to expand its Vietnam life insurance operation through two partnerships that will give it access to a combined 11.2 million customers.
The insurance company’s Vietnam wing has agreed a 20-year bancassurance partnership — a relationship between a bank and insurer to sell coverage to banking customers — with SeABank, giving it access to approximately 1.2 million customers.
Access to the remaining 10 million customers will come from an agreement with the bank’s parent company BRG Group, a major conglomerate in Vietnam, which will see Prudential become the preferred life insurance provider across its portfolio of companies.
Prudential Vietnam CEO Clive Baker said: “Bancassurance has been a key driver of our recent growth in the country and we are delighted to partner with SeABank.
“The combination with SeABank will deliver a leading bancassurance franchise in Vietnam and we will continue to invest in our partnership network, alongside our well-established and successful agency force.”
Prudential’s long-term plan in Vietnam
In August 2019 the World Bank revealed that Vietnam’s elderly population was set to double from 7% to 14% of its total — increasing the need for life coverage among its citizens.
Prudential is currently one of largest providers of life cover in the country, with a customer base of 1.5 million — but it recently signalled a desire to capture even more of this market in a 2018 strategy presentation.
The document laid out a target to increase new business profit in the life insurance segment from $10.5bn in 2017 to $18.4bn in 2022.
The deal with SeABank marks the ninth bancassurance agreement for the insurer, with arrangements between itself and major players including Maritime Bank and Vietnam International Commercial Joint Stock Bank contributing to its growth in the country.
Appearing in finance news publication Vietnam Investment Review in November 2019, Baker said: “In the first half of 2019, we recorded a growth in the number of new policies reaching about 150% compared to the same period in 2018.
“We believe that our strategic partnership with prestigious banks will continue to help us to extend the reach of our financial solutions to Vietnamese people all over the country.”
SeABank comments on partnership
The new tie-ups signal a desire to continue using the bancassurance channel, and Prudential Corporation Asia CEO Nic Nicandrou said: “Vietnam is an important market for Prudential with a compelling long-term growth outlook.
“Our partnership with SeABank is fully aligned with our mission of helping individuals and families in Vietnam.”
For SeABank, the deal allows it to expand its value to customers by offering insurance as well as banking services.
CEO Ms Lê Thu Thủy said: “This partnership enables us to offer our growing customer base access to Prudential Vietnam’s market-leading and innovative product suite.
“We look forward to collaborating closely with Prudential Vietnam to deliver a superior customer experience.”