Allianz and StanChart sign 15-year bancassurance dealJanuary 20 2017 by InsuranceAsia News Staff
Standard Chartered and Allianz have signed a 15-year bancassurance agreement for the distribution of Allianz’s general insurance products, including travel, personal accident, fire and motor insurance products to Standard Chartered’s retail banking clients in five key markets across Asia.
The deal covers Hong Kong, Singapore, Malaysia, Indonesia and China, and will be implemented during the course of 2017.
In addition to Standard Chartered’s branch network, Allianz products will also be distributed through the bank’s digital bancassurance platform.
Axa and a unit of MS&AD were also reportedly competing for the mandate, which analysts have previously estimated to be worth around US$300 million. Allianz has not disclosed the price it paid to secure the deal.
Insurers have been willing to pay hefty fees for bancassurance deals because of the growth opportunity in a region with low insurance penetration and an emerging middle class. According to its own research, Allianz says Asia’s demand for non-life insurance is forecast to grow at 10.8% a year during the next four years to reach a total market size of approximately US$280 billion by 2020.
“This partnership also builds on our shared commitment towards the growth and development of the Asia region,” said George Sartorel (pictured above), regional chief executive for Asia Pacific at Allianz.
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The agreement extends original alliance that started in 2010 for a fee of US$851m.
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