The agreement is expected to come into effect in December 2022 with a 15-year term.
J.P. Morgan – a global leading financial institution - acted as the exclusive financial advisor to LienVietPostBank on this transaction.
Under the partnership, Dai-ichi Life Vietnam will be the exclusive provider of all innovative life insurance products and superior add-on benefits at LienVietPostBank customers’ option. Customers will be introduced to a wide range of insurance products of Dai-ichi Life Vietnam through its network of bank branches and transaction offices across 63 provinces, along with the bank’s surging fast and convenient digital banking system, thereby enhancing customer experience. This is in line with LienVietPostBank’s digital transformation strategy toward the target of becoming a Vietnam’s top retail bank.
The strategic partnership between LienVietPostBank and Dai-ichi Life Vietnam started in November 2016. After six years of cooperation, LienVietPostBank and Dai-ichi Life Vietnam have provided financial services to nearly 180,000 customers with a total premium collected that far exceeded the initial targets. In addition, the two institutions have strived to support and settled insurance claims of around 1,320 customers. As of June 2022, LienVietPostBank was listed among the top 9 banks in terms of bancassurance sales in Vietnam market.
Building on the achievements and strengths of both sides, Dai-ichi Life Vietnam and LienVietPostBank will extend the commitment to long-term and sustainable co-operation on the basis of equality, win-win principle and mutual trust, and have macro-level strategies to invest in the robust growth of bancassurance operations in Vietnam.
According to Mr. Pham Doan Son – Permanent Vice Chairman of the Board of Directors cum CEO of LienVietPostBank, leveraging the success of their first-time collaboration and track record in banking – insurance of both sides, in the upcoming 15 years of their journey, LienVietPostBank and Dai-ichi Life Vietnam are committed to offering millions of customers of LienVietPostBank comprehensive life insurance solutions through digital platform. Such solutions are tailored to each segment’s demand at a truly competitive pricing and best-in-class quality owing to their simplicity, swiftness and convenience. With nationwide coverage as its special advantage, LienVietPostBank will promote the distribution of Dai-ichi Life Vietnam’s financial protection products of Japanese quality to customers, thereby diversifying the portfolio of products and services. Both sides will continue to expand their partnership in multiple areas to bolster each other’s strengths.To make a more effective use of this bancassurance partnership, as per Mr. Pham Doan Son, LienVietPostBank will closely work with Dai-ichi Life Vietnam to organize in-depth training courses on products as well as customer consultation skills and care to the bank’s employees to ensure that their personnel is fully equipped with knowledge, information and experience. Accordingly, the sales force will be capable of providing optimal advice that best befit customers’ needs and financial conditions.
Mr. Tran Dinh Quan – Chairman cum General Director of Dai-ichi Life Vietnam, said: “Following the fruitful results in the first six years of our partnership, this exclusive 15-year partnership agreement between Dai-ichi Life Vietnam, a Japanese life insurance brand with market-leading experience, reputation and position, and LienVietPostBank, a bank with a nationwide network, will help to reinforce the solid foundation of the relationship, thereby achieving the goal of better satisfying long-term financial and security needs of customers and their families through Dai-ichi Life Vietnam’s Japanese-quality life insurance products and services.”
This becomes even more significant given that there is ample room for growth in the insurance market as penetration rate in Vietnam is currently low. Along with socio-economic development, especially since the outbreak of COVID-19, the diversity of insurance products with favorable benefits has been attracting more life insurance participants. According to statistics, life insurance penetration rate (i.e. total life insurance premiums per GDP) is less than 2%, which is much lower than worldwide average of 3.3%. This rate is also lower than those of regional peers such as Malaysia 4%, Thailand 3.4%, India 3.2%, etc.
“We expect to see more impressive milestones in the upcoming 15 years of partnership between Dai-ichi Life Vietnam and LienVietPostBank. Not only will we offer superior financial solutions and the highest level of trust and satisfaction to our customers, but we will also contribute to the sustainable growth of bancassurance business in the Vietnam market”, said Mr Tran Dinh Quan.
