Vietcombank on August 20 announced it would provide life insurance services via a signed agreement with insurer Prudential and an agreement on payment of Prudential premiums via Vietcombank’s automatic teller machine (ATM) system. This is a part of the agreement on further cooperation of trading insurance that was signed between Vietcombank and Prudential in early 2003, said Vu Viet Ngoan, general director of Vietcombank.
Under the first agreement, Vietcombank will become an official distributor of Prudential’s life insurance products. As planned, this year, Vietcombank will provide these products in Hanoi and then nationwide.
The cooperation between Prudential and Vietcombank will diversify distribution channels of Prudential’s products as well as Vietcombank’s products and services in order to provide the best products and services for customers and to raise more capital, said Huynh Thanh Phong, general director of Prudential Vietnam.
Formerly, life insurance in general and banking services for individuals in particular didn’t attract much attention of the public. However, recently, banks are starting to cooperate with insurance companies such as Vietcombank, the Bank for Investment and Development (Bidv) and the Bank for Agriculture and Rural Development (Agribank). This cooperation has diversified banking products and services at the same time attracted more potential customers although the number of retail customers of banks is still not as much as the potential suggests.