Known as one of the channels that bring benefits to insurance customers, bancassurance is showing its value more and more, especially in the current “digitized” context.
Bancassurance has flourished worldwide over the past few decades. Started in France in the 1960s, the model has since expanded to other countries around the world, including Europe, Asia and North America.
During the 1990s, bancassurance became the main business model of many banks worldwide, especially in Europe and Asia, after these banks learned about the insurance needs of their customers and started to cooperate with insurance companies to provide tailored insurance solutions.
In Vietnam, bancassurance has developed since 2005 and is now growing strongly with the participation of most of the major banks in Vietnam.
What do customers benefit?
According to experts, the flexible development of bancassurance brings customers many benefits. First, customers are financially protected against life’s risks.
Second, bancassurance brings convenience. Customers can buy insurance at branches/transaction offices of banks where customers still make transactions of withdrawing, depositing, managing assets, etc., minimizing travel time and costs.
Third, customers can receive preferential policies from both banks and insurance companies.
Fourth, thanks to bancassurance, customers can buy insurance in various forms. Customers can buy insurance through financial advisors of insurance companies working at insurance consulting counters located at banking transaction offices or can actively research and buy insurance on their own. Use your insurance company’s digital bank or online insurance website.
Successful bancassurance model in the region
Referring to bancassurance in Vietnam or Asia, we can mention FWD insurance, which is holding many large-scale bancassurance cooperation in the region.
FWD Group currently distributes insurance through 22 banking partners in Asia, of which 9 are exclusive. Typically, FWD is implementing bancassurance in Hong Kong with Bank of Communications, China Construction Bank, in Thailand with Siam Commercial Bank, in the Philippines with Security Bank Corporation, in Malaysia with HSBC, in Indonesia with Commonwealth of Australia and BRI (Bank Rakyat Indonesia), in Vietnam with Vietcombank, Agribank, HDBank, NamABank.
FWD’s success in bancassurance is attributed to many reasons, including the size and reputation of the banks that this group chooses to cooperate with; FWD’s insurance products are simple, easy to understand, innovative and suitable for customers’ needs; FWD’s customer care service is highly appreciated thanks to the application of modern technology.
Besides, FWD has the advantage of quickly and comprehensively applying digital technology, from which it can offer differentiated and personalized insurance solutions according to each customer’s needs.
Advantages of digital bancassurance
In Vietnam, the cooperation between FWD and Vietcombank has always been considered as a large-scale bancassurance cooperation with many differences thanks to the advantage of digital bancassurance, which is the strength of both parties.
In addition to 100% online insurance products, Vietcombank – FWD also implemented new features that allow customers to design their own insurance packages or book an appointment for an insurance consultation via the Digibank application.
Thanks to strong investment in technology, Vietcombank – FWD customers can consult, receive and manage insurance policies completely online, withdraw money online anytime, anywhere 24/7 from their contract accounts. insurance; 24h online insurance claim…
In addition, customer experience is always the top priority of Vietcombank – FWD cooperation. The two parties have set up a monitoring department to conduct customer surveys, ensuring that customers are consulted with complete and accurate information and feel comfortable when participating in insurance contracts.
Thanks to that, Vietcombank – FWD cooperation achieved the highest renewal rate in the bancassurance market today. The customer experience index when participating in insurance at FWD also leads the insurance market in Vietnam for 2 consecutive years (according to KPMG’s report in 2021, 2022).
Facing the rapidly growing bancassurance trend in Vietnam, experts offer some advice to help customers make the right choice when intending to participate in insurance through bancassurance.
Accordingly, customers need to find out the different types of life insurance that banks and insurance companies are offering; consider your own needs and financial situation; carefully read the rules and terms of the life insurance products that interest you to understand the benefits and responsibilities; Finally, customers can ask for a full consultation until they really understand the product they are involved in.