Prudential, StanChart cement 25 years of bancassurance tie-up

They have the longest-running bancassurance partnership in Singapore and Asia.

Prudential Plc and Standard Chartered Plc’s long-standing bancassurance partnership has averaged “double-digit” sales growth in the past 15 years, thanks to product innovation by their health and wealth segments.

The insurer and the bank entered their 25th year of bancassurance partnership early this year, the longest in Asia.

“Through geographical expansion, continuous enhancement of our wealth and health offerings, and the optimisation of technology-powered omni-customer journeys, we have deepened our market penetration across all customer segments, from affluent to personal mass,” John Chow, chief partnership distribution officer at Prudential Singapore, told the magazine.

“Today, this strategic bancassurance partnership spans 11 markets in Asia and Africa, and has averaged double-digit sales growth rate over the past 15 years,” he said in an emailed reply to questions.

Affluent people in Singapore and Hong Kong prioritise financial freedom but their perspectives differ, according to a 2024 study by Affluential released in September.

In Hong Kong, high-net-worth people largely focus on securing a comfortable retirement in the face of uncertainties, whilst Singapore’s wealthy adopt a more optimistic outlook, prioritising a comfortable lifestyle, it said.

“Customers today expect personalised, convenient and seamless experiences, and both companies have collaborated to respond and adapt to them,” Chow said

“Bancassurance continues to be a major distribution channel for insurers. We continue to feel positive about the future of bancassurance, with various opportunities for growth and innovation,” he added.

The tie-up between Prudential and Standard Chartered is the longest-running bancassurance partnership in Singapore and across Asia. 

“Navigating evolving regulatory challenges and staying ahead of market competition will be crucial for maintaining successful long-term partnerships,” Chow said.

The insurer’s new business profit from bancassurance rose 20% to $465m in the first half of 2024 from a year earlier, driven by annual premium equivalent sales growth in Taiwan, Hong Kong and Singapore. Sales through the bancassurance channel increased 27%.

“In the past decade, as affluence levels increased, we have also pivoted to meet widening clients’ needs,” Jeremy Ong, head of bancassurance for Singapore at  Standard Chartered Bank, said in an email response.

Apart from savings and protection plans, legacy planning solutions were added to the bank for clients looking to pass on wealth.

In 2023, StanChart launched two US dollar-denominated insurance products, whose volume doubled in 2024 from a year earlier and now contribute to 30% of its sales, Ong said.

The bank-insurer tandem also provides medical insurance to their employees.

“We switched our medical insurance benefits provider to Prudential in April 2024 to provide employees with broader options in their insurance benefits, including comprehensive general practitioner care, specialist care and annual health screenings,” Ong said.

He added that the bank plans to conduct an annual survey starting this year to monitor service quality and satisfaction from the tie-up.

Both Prudential and Standard Chartered expect significant opportunities for bancassurance growth, driven by tech advancements and a stronger focus on customer needs.

“We will continue to work collaboratively with industry partners and authorities to drive the bancassurance industry forward and better serve customer needs,” Chow said.

He said artificial intelligence (AI) could help them design more highly-personalised products.

“For example, automated underwriting, digital claims processing and AI-driven customer insights, seamless digital interactions and more will help to streamline and enhance customer experience and engagement,” he added.

Ong, for his part, cited the need to be quick in product development and distribution. 

“This requires a strong handshake between both parties to create and launch products in a timely response to the feedback loop from our clients and sales force, all whilst maintaining the equilibrium of meeting wealth/protection needs and making business sense,” he added.