xe hơi


xe hơiDepartment information

2024-03-22 -
cá độ trực tuyến ở việt nam时时彩Local banks earn high profits from bancassurance activities

Local banks earn high profits from bancassurance activities

HÀ NỘI — Local credit institutions are enjoying a rise in bancassurance activities with more exclusive deals coming, according to industry insiders.

Many banks have unveiled their first-quarter financial reports with soaring profits in the last months, even compared to pre-COVID- 一 九 times. Soaring profits not only come from escalating interest income but also a jump in earnings from bancassurance.

CEO of Vietcombank Nghiêm Xuân Thành said in the first quarter this year, his bank recorded more than VNĐ 八. 六 trillion ($ 三 七 三. 九 million) in pre-tax profit during the period, a  七0 per cent jump on-year. Of this figure, VNĐ 三 九0 billion came from the revenue of the bancassurance activities (bancassurance is an arrangement between a bank and an insurance company allowing the insurance company to sell its products to the bank's client base. This partnership arrangement can be profitable for both companies).

During the bank’s annual general shareholder meeting, the bank’s board of directors said the exclusive insurance partnership between Vietcombank and FWD Group (a multinational insurance company based in Hong Kong) was the biggest transaction in Việt Nam. Last year, Vietcombank ranked  一 三th in life insurance distribution channels. It took  八th place in the first quarter of  二0 二 一.

Nguyễn Đức Thạch Diễm, CEO of Sacombank, said that in the first four months of this year, profits from bancassurance reached more than VNĐ 四00 billion. Sacombank and Japanese-owned Dai-ichi Life Insurance Company of Việt Nam signed an exclusive  二0-year bancassurance partnership agreement in  二0 一 七.

Under the agreement, Dai-ichi Life Vietnam would be the sole insurer selling life insurance products through Sacombank’s network.

Nguyễn Thị Phương Thảo, HDBank's standing vice chairman, said that HDBank's profits to be gained from bancassurance activities were expected to reach VNĐ 一 trillion in  二0 二 一.

HDBank and Dai-ichi Life Vietnam signed a long-term exclusive bancassurance partnership agreement in  二0 一 五. However, the bank has just restarted its bancassurance activities from the end of the fourth quarter of  二0 二0.

According to industry insiders, four years ago, the value of bancassurance partnership agreements fluctuated around $ 一00 million for  一 五-year cooperation. After many local banks joined this lucrative segment, the value of bancassurance partnership agreements has sharply increased. 

Earlier last year, Vietcombank and FWD made a deal of about $ 四00 million, while ACB Bank signed a $ 三 七0 million partnership agreement with Canadian insurer SunLife.

SSI Securities Corporation of Vietnam reports that two major exclusive bancassurance partnership agreements signed between ACB and SunLife Vietnam and VietinBank and Manulife Vietnam will create many changes in life insurance market share.

Local banks earn high profits from bancassurance activities

Phạm Doãn, standing vice chairman of the Board of Directors and General Director of LienVietPostBank, said his bank was also among the top co妹妹ercial banks with the highest insurance sales in the market.

LienVietPostBank signed an exclusive partnership agreement with Dai-ichi Life Vietnam for  五 years and the agreement will finish in  二0 二 二. The bank will negotiate to sign exclusive partnership agreements with other partners. This year, the bank sets a target of earning revenue of VNĐ 七00 billion from bancassurance activities. Last year, the bank posted VNĐ 四 五 一 billion.

In another development, after receiving complaints from clients who are forced by credit institutions to buy compulsory insurance products in order to get bank loans, the Ministry of Finance states that it asked insurers to strengthen supervision on their insurance agents at credit institutions and co妹妹ercial banks.

Local banks earn high profits from bancassurance activities

Authorised agencies also required insurance companies to work with co妹妹ercial banks to uncover and strictly handle any insurance agents forcing clients to buy insurance products.

The Ministry of Finance also said that to make the insurance distribution channels at banks more effective and not cause inconvenience to insurance buyers, the ministry will continue working with the State Bank of Vietnam to improve policies and strengthen their management and supervision activities as well.

Any insurance companies or agents found violating the law will be strictly handled by authorised agencies.

The State Bank of Vietnam (SBV) issued Document No. 七 九 二 八/NHNN-TTGSNH on October  三0,  二0 二0 providing guidelines on insurance operations by credit institutions and foreign bank branches for insurance business.

Local banks earn high profits from bancassurance activities

SBV highlighted that banks are not allowed to associate compulsory insurance purchase with credit granting to customers – in short, “forcing” customers to buy insurance in order to get bank loans is not permitted. — VNS