An indispensable part of BIDV ecosystem

manh hai

BIDV and BIC have defined new positions in cooperation on bancassurance. The mindset about the role of insurance in banking operations has undergone comprehensive changes.

FRUITFUL RESULTS

In August 2019 in Nha Trang City, BIDV Insurance Corporation (BIC) held a conference on bancassurance with the participation by the leadership and key staffs of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) and BIC. The conference has comprehensively changed the mindsets of the BIDV and BIC systems about the role of insurance in banking operations.

In 2019 and 2020, BIC’s bancassurance revenue growth rate was over 70 percent per year. In 2021, the bancassurance revenues exceeded VND700 billion, up to 33 percent over the previous year, significantly contributing to BIDV’s net service income. BIC’s insurance activities at BIDV aim to ensure the interest and safety for BIDV and its customers, a humane sharing of difficulties in case an unfortunate event occurs.

BIC is both a subsidiary and a major business partner of BIDV. Becoming a partner is an enhancement in the cooperation relationship between BIDV and BIC, demonstrating the mutual understanding of benefits as well professionalism in business activities.

BIC leadership always spends the best resources on developing bancassurance operation. The quality compensation and customer care have continuously improved. BIC’s insurance products are developed to be a truly competitive advantage of the banking product and service package, bringing practical benefits to customers and suitable for the business activities of BIDV and BIC.

Mr. Phan Duc Tu - Chairman of the Board of Directors of BIDV commented on BIC’s performance

A seminar on bancassurance between BIDV and BIC

at the company’s conference on business plan implementation for 2022 which took place on 18 February 2022. Accordingly, the BIDV chairman spoke highly of the achievements that BIC has gained in 2021 as well as its contributions to the BIDV system over the years.

Mr. Phan Duc Tu emphasized: “In 2021, BIDV successfully excelled at all business targets from scale, structure, quality and portfolios and BIC contributed an important part to the bank’s overall success. 30 months after the conference in Nha Trang City, BIC has made positive changes in mindset and methodology in governance and management, creating a new working atmosphere and direction. The company’s business results have increasingly improved, affirming its position in the non-life insurance market and in the BIDV system. BIC has made significant contribution to BIDV’s business results in 2021 and created more resources for BIDV to continue growing faster and stronger in the years to come”.

The BIDV Chairman also highly appreciated BIC’s insurance products, particularly the BIC Care, which has provided practical support to BIDV’s staffs and customers during the pandemic. The company helped maintain the system’s good business continuity and ensured the best customer service.

MOVING FORWARD

Bancassurance development is an inevitable trend providing harmonious benefits for customers, banks and insurance companies. In particular, customers will be provided with “onestop” financial services at competitive prices. Customers and banks will enjoy increased financial protection from the insurance company’s products and services, which improves customer loyalty as well as sharing with customers’ difficulties in case of any unfortunate insurance events, and reducing bad debts for banks. For insurance companies, partnerships with banks will help them take advantage of the strength of banks’ brand name and customer base to develop their business activities.

Regarding partnership between BIDV and BIC, the Board chairman of BIDV has affirmed: First of all, BIDV determines that insurance will continue to be one of the key pillars in the business ecosystem of the whole system. Secondly, BIC needs to position itself in the market, make more innovation in business mindset, and develop a development strategy with higher growth in the coming time to meet the expectations of shareholders, employees, customers, and society. Thirdly, BIC needs to focus on improving product quality and customer services, promoting comprehensive digitalization to serve customers better. The company also needs to strengthen internal management, cement its brand, image, and position in the insurance industry and in BIDV system. Fourthly, BIC needs to take advantage of the two major shareholders – BIDV and Fairfax – to promote bancassurance activities.

The Chairman of BIDV Mr. Phan Duc Tu heightened his expectation that BIC will make great changes as set in the business plan until 2025 in line with the golden words “Innovation, Creation and Sustainable Development” in all activities to reach new heights.

Mr. Phan Duc Tu, Chairman of BIDV