Hong Kong based insurer sees Vietnam as huge potential market
Hong Kong based insurer FWD Group is working to quickly establish its presence in Vietnam as the country has a huge growth potential on insurance market with more than 90 million people, according to the group’s CEO Huynh Thanh Phong.
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The firm acquired Great Eastern Life Vietnam from Singapore’s Great Eastern Life Assurance last month in an attempt to lead a faster market penetration by taking advantage of Great Eastern Life Vietnam’s existing market share, personnel and infrastructure, Phong said.
The group also signed a 15-year agreement for a bancassurance partnership with An Binh Joint Stock Bank (ABBANK) on July 14 which will offer it the exclusive right to distribute its life insurance and saving products to the bank’s customers, he added.
Explaining why the FWD group is taking its first step in the country with the bancassurance deal, Phong said bancassurance currently accounts for only around 3 percent of sales in Vietnam compared to 50-60 percent in other Asian markets, meaning a huge opportunity for the group.
In addition to that, the country is shifting from an insurance industry that focuses on single-channel distribution to one with multi-channel distribution.
When entering Vietnam, the firm hopes to change the way people feel about insurance and make them more aware of the importance of life insurance for them and their families, he stressed.
It could be done by the company’s unique approach in providing consulting services and designing a contract, alongside its 24-hour and convenient customer care, and easy-to-understand products.
Headquartered in Hong Kong, FWD offers customers life and medical insurance, employee benefits and general insurance across Hong Kong, Macau, Thailand, Indonesia, the Philippines and Singapore.
