Vietcombank, Cardif and Seabank launch VCLI, specialist in Bancassurance
- 11/06/2009
Vietcombank, Cardif and SeAbank have announced the launch today of VCLI, an insurance joint venture company that will market savings and protection products in Vietnam through bancassurance model.
The new company is 45%-owned by Vietcombank, 43% by Cardif, the insurance arm of BNP Paribas, the number one bank in the euro zone in terms of deposits, and 12% by SeAbank. It has already obtained a license from the Finance Ministry authorizing it to operate throughout Vietnam.
In launching this new business, VCLI is drawing on Cardif’s 35 years of experience in bancassurance in 41 countries around the world. Cardif enjoys deep actuarial expertise and is the world No. 1 in creditor insurance. At the same time, VCLI benefits from the extensive experience of Vietcombank, the leading commercial bank in Vietnam, as well as SeAbank, one of the biggest Vietnamese commercial joint stock bank.
VCLI will market its savings and protection products via the branch networks of Vietcombank and SeAbank, as well as other channels: banks, financial institutions, direct marketing, telemarketing and Internet.
VCLI will initially propose creditor insurance and individual protection products before introducing a full range of savings products in the second stage of its development.
The new venture will deploy Cardif’s proven bancassurance business model, based on a large network of distribution partners.
A survey completed in May 2009 by the FTA Research institute commissioned by VCLI shows that:
- 86% of the Vietnamese feel a strong sense of vulnerability towards life contingencies as they would not be able to maintain their monthly budget more than 6 months in case of unexpected event;
- 84% of them are strongly appealed by credit as they think that “it is convenient to pay in several installments while enjoying what they buy”
- 91% believe that creditor insurance coverage is essential to protect their budget.
“Based on our ten years of experience in five Asian countries, we are very optimistic about the market potential of creditor insurance and life insurance products through this new multipartnership structure in Vietnam. We are totally committed to delivering high quality service and products that meet the needs of local businesses and the expectations of clients. The new company will take full advantage of Vietcombank’s extensive network of branches, as well as the expertise of SeAbank in serving young entrepreneurs in the country,” said Eric Lombard Chief Executive Officer of BNP Paribas Assurance.
Mrs.Nguyen Thi Tam, Chairwoman of VCLI, said in her statement: “In this current global economic recession, we all parties will benefit by joining this cooperation. To the bank, the joint venture enables it to extend its product portfolio and helps to increase the capital mobilization originated from insurance. To the insurer, it is a means to enlarge the market share, to grow the premium volume and to save selling and distribution costs. We hope that, with the professionalism and experience that each party brings to the joint venture, we will offer an all-in financial package at low cost and top convenience, an advantage which comes by with the value-added banking insurance services."
About
Cardif
Cardif is an insurance unit of BNP Paribas Assurance. Cardif develops and markets savings and protection solutions which are distributed via diverse channels. It has received an AA rating from Standard & Poor’s. With operations in nearly 41 countries, Cardif enjoys strong positions in Europe, Asia and Latin America. Cardif’s roster of partners now includes more than 35 of the world’s top 100 banks. BNP Paribas Assurance (www.assurance.bnpparibas.com) is the life and property & casualty insurance arm of BNP Paribas. It counts 8,000 employees, 70% of them outside France.
BNP Paribas Assurance
BNP Paribas Assurance is actively committed to exemplary Corporate Social Responsibility. It has adopted a Socially Responsible Investment program, encourages diversity throughout the enterprise and supports local economic development in the markets where it operates. BNP Paribas Assurance is equally committed to environmental responsibility, targeting a 10-percent reduction in the company's carbon emissions by 2010. BNP Paribas Assurance had gross written premiums of €16.1 billion in 2008. It generated 42% of its 2008 gross written premiums outside the BNP Paribas group and 37% of gross written premiums outside France. BNP Paribas Assurance is the world leader in creditor insurance and the fourth-largest life insurance company in France.