DBS Group Holdings - has entered into a 15-year distribution partnership agreement with New York-listed insurance company Chubb for its markets in Singapore, Hong Kong, Taiwan, Indonesia and China.
The Singapore bank said on Thursday that it will distribute Chubb's coverage for home, contents and selected personal-accident and supplemental health-insurance products, as well as general insurance products for small and medium enterprises. The agreement will take effect in early 2018, and insurance products will be rolled out by DBS progressively through the year.
By leveraging on DBS' network in Asia, the partnership will expand Chubb's market reach in the region. Out of $35.9 billion of gross premiums written by Chubb in 2016, $4.6 billion were in Asia. DBS' large customer base "broadens and deepens" Chubb's presence in the region, Evan G. Greenberg, Chubb's chairman and chief executive, said in a statement.
"At DBS, we were looking for a general insurance partner with a strong, long-standing presence in Asia, a broad product portfolio, extensive digital capabilities, and a proven track record of bancassurance sales," Piyush Gupta, chief executive of DBS, said in the same statement. "Chubb fit our criteria in every respect."
Bancassurance products are sold through a bank instead of insurance agents. DBS has been forging such partnerships with a number of international players in recent years. Last year, Canadian insurance company Manulife Financial struck a $1.2 billion deal with DBS for a 15-year bancassurance partnership to distribute its products across Singapore, Hong Kong, China and Indonesia, with additional payments based on the success of the partnership.
Chubb is the world's largest publicly traded property and casualty insurance company and among the largest global players in general insurance and reinsurance. It serves clients in more than 190 markets.
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