Workshop "Value Optimization for Bancassurance Relationship"
The workshop offered the solution for a long-term and effective Bancassurance partnership.
Bancassurance – the relationship aimed at offering insurance products or insurance benefits to the bank's customers is more and more popular in Vietnam. Many huge cooperative deals worth over VND trillion have been announced recently. While there’re many good implications at the beginning, the effectiveness of a relationship is still questionable with arising conflicts and challenges between two parties.
Currently, out of nearly 100 banks (including branches and representative offices of foreign banks) in Vietnam, there are about 25 exclusive co-operative relationships with insurance companies. When setting up an exclusive partnership, banks often consider from different aspects, in which the most notable is the up-front fee. Banks are more likely to be persuaded when the insurance company offers an attractive figure. However, the huge up-front fee can cause some trade-off for banks, such as unrealistic demanding sale target, lower incentive for bank staff or core banking products are ignored.
So, how a long-term Bancassurance partnership can be effective right from the start? Workshop "Value Optimization for Bancassurance Relationship" by EY Vietnam on same day, November 17th, provided the suggestions to solve this problem. The event also provide the recap information about the market, raise the challenges and a specific way to resolve conflicts in the relationship between the two parties to build and optimize the value brought by the partnership for both banks and insurance companies.