The exclusive Bancassurance partnership between Prudential Vietnam and VIB is extended until 2036, bringing Vietnam Bancassurance industry to the next generation

The extension of the strategic bancassurance partnership between the two organisations will underscore the objective of both sides to bolster future confidence for Vietnam Bancassurance Industry, bringing Vietnam Bancassurance Industry to the next generation, as well as contribute to the healthy and sustainable development of bancassurance industry in Vietnam. 

This partnership is an important milestone in the bilateral cooperation relationship, helping to set new standards for bancassurance industry in Vietnam with outstanding changes:

-    The first bancassurance cooperation agreement is inputted the quality of consulting service and insurance contract service by setting a minimum "Persistency rate" and gradually increasing to the ideal level.

-    The first bancassurance cooperation agreement has an establishment of “Joint Customer Conduct Committee" that will help to strengthen control over business activities, manage, monitor and take timely actions related to issues of standards of conduct with customers.

-    The first bancassurance cooperation agreement is included arrangement on the proportion of distribution of product portfolios and customers.

Life is full of uncertainty. We need to prepare for the best and the worst. An unfortunate event can negatively affect the safety of the family and wipe out the wealth accumulated over the years. Life insurance provides financial security and continuity in fulfilling life goals. It can also provide peace of mind, savings and investment benefits. 

These are practical benefits, civilized financial needs, and freedom of choice, not obligations for policyholders. That is the reasons why over 60% of families in developed countries have participated in life insurance. Especially in the US and Singapore, the rate is over 80%, compared to about 11% in Vietnam. 

With that in mind, Prudential and VIB have both made a firm commitment and joined forces to bring to Vietnam the best practices of the thriving insurance industry. They have been enjoyed by millions in developed countries such as the US, Europe and Australia and are chosen by more and more Vietnamese customers.

Commenting on this partnership, Phương Tiến Minh, CEO of Prudential Vietnam said: “The Life Insurance market in Vietnam is still young with nearly 25 years of development, in which, bancassurance channel has only recorded strong growth from 2016 until now. This strong growth has allowed us to see the potential opportunities for improvement in product, service, and sales quality. We are proud to have a partner with the same vision as VIB. The extension until 2036 is not only a testament of our excellent relationship, but also a pioneering movement in bringing Vietnam Bancassurance Industry to the next level focusing into providing best solutions to the right customer segments to achieve sustainable growth for both parties”.

“This new partnership extension is an important milestone in the strategic partnership of both sides with the expectation of setting new standards for bancassurance in Vietnam. This movement is also our response to the Government’s direction, following the Ministry of Finance’s solutions in making prolonged and positive changes to the life insurance industry in general, and the Bancassurance Industry in particular, to contribute more to the economic development and social security”, Minh added.

CEO of VIB Hàn Ngọc Vũ said: “With the vision of becoming the most innovative and customer-oriented bank in Vietnam, VIB has given top priority to offering comprehensive financial solutions to meet the increasing requirements of the Vietnamese people. In which, an important orientation is to provide customers with options in both hedging and ensuring a long-term and sustainable financial plan”. 

“Distributing Prudential insurance products through banks is one of the options that we offer to our customers. Prudential is a large international corporation with the world's leading reputation. It is also a model enterprise that has a strong commitment to the Vietnamese market. This firm has good insurance products, transparent policies and processes and professional mechanisms coordination.”

“With this choice, we have made sufficient investments on a large scale with innovative service solutions as well as extensive application of technology to consult and provide the right solutions to customers' needs and continuously improve service quality.” 

Vũ said enhancing strategic cooperation with Prudential has demonstrated the commitment of the two sides towards the sustainable development of the insurance market by the orientation of the State management agencies and opening up opportunities so that VIB could better serve customers, expand the retail business and affirm its goal of becoming a leading retail bank. 

Since its establishment, Vietnam's insurance industry has made positive contributions to the realization of the country's socio-economic development goals. By the end of April 2023, the insurance businesses have invested back into the economy with an estimated amount of VND 708.4 trillion. The insurance industry is expected to reach a scale of about 3 - 3.3% of GDP by 2025.

In 2022, the entire life insurance industry already paid claims of over VND 42 trillion, of which Prudential accounted for 25% of total payments with nearly VND 9,600 billion. More than VND 1,600 billion was paid for more than 150,000 cases with death benefit, total and permanent disability, critical illness and medical care, which increased 35% compared to 2021. From Prudential’s bancassurance channel alone, the number of claim cases and the claim pay-outs for customers increased by 64% and 69% respectively compared to 2021, showing the protection needs of customers through banking is increasing every day.

When implementing the bancassurance model, VIB has focused on ensuring capacities of consultors and supervising the quality of their consultations through specific processes and regulations based on guaranteeing the general principles. 

To promptly answer customers' inquiries and improve the quality of consultations, the bank has also extensively implemented after-sales activities such as making random calls, updating financial milestones and others. 

From January 1, 2023, the two companies have coordinated to deploy calls from the insurance switchboard to all new bancassurance customers to check the quality of the consultations and reports on consultation quality have been made every month. 

In the future, the two sides will team up to accelerate staff training, coaching and supervision, and communication activities so that local people will have more complete information about the characteristics of insurance products. They will also continue to accompany customers to solve problems to bring the best possible experience to them besides to constantly improving service quality./. 

Media contact

Prudential

Nguyen Thi Thanh Phuong     +84 (0) 917071105

VIB

 Bui Thi Hong Thanh               +84 (0) 902 911 194

About Prudential Vietnam

Prudential Vietnam Life Insurance Co., Ltd. (Prudential) is a member of Prudential plc, providing life and health insurance and asset management for 24 countries in Asia and Africa. The business helps people get the most out of life, by making healthcare affordable and accessible and by promoting financial inclusion. With 24 years of operation in Vietnam, Prudential is focusing on expanding the life insurance market and changing people's perceptions of insurance. 

As of the end of December 2022, Prudential Vietnam has developed a team of more than 126.000 professional consultants, with more than 328 general agent offices, transaction offices, and customer service centers together with the network of 7 prestigious partner banks that are ready to serve more than 2.1 million customers nationwide. 

With the slogan “Listening. Understanding. Delivering.”, Prudential reaffirms its commitment to always putting customers first, delivering innovative and comprehensive solutions to protect people’s wealth, helping them grow their assets, and empowering them to save for their goals.