The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) plans to invite bids from insurers for exclusive rights to distribute life insurance products through its network.
The deal between Vietcombank and its partner is expected to be for at least 10 years and be worth as much as $1 billion over the life of the contract, reports Vietnam News Agency.
Vietcombank chose Credit Suisse Group to advise it on finding a new insurance distribution partner.
Last year, several bancassurance deals were inked, including Sai Gon Thuong Tin Commercial Joint Stock Bank’s 20-year agreement with Dai-ichi Life Holdings. and Techcombank’s 15-year deal with Manulife Financial Corp.
Contributions of bancassurance sales in Vietnam jumped from 1% in 2013 to more than 10% in 2017. This scale is much smaller than in other Asian markets like Thailand, Indonesia, Singapore and Hong Kong, where bancassurance makes up between 30% and 50% of overall insurance distribution