AIA Group Limited and Citibank N.A. have reached agreement on an exclusive bancassurance partnership that encompasses 11 markets in the Asia-Pacific region. The markets included in the agreement are: Hong Kong, Singapore, Thailand, China, Indonesia, the Philippines, Vietnam, Malaysia, Australia, India, and Korea.
The exclusive distribution agreement is for 15 years. AIA said that the partnership involved all retail distribution channels, including branches, telemarketing, and online channels, and both retail and group life insurance product areas (excluding credit insurance). AIA said that the agreement provides AIA access to Citibank's corporate clients and approximately 13 million existing retail cardholders and banking customers in the 11 markets.
Mark Tucker, AIA's group chief executive and president, said, “This highly attractive distribution agreement further consolidates AIA's leading position in Asia's fast growing life insurance markets and significantly enhances our bancassurance platform alongside our long established and market leading agency channel. Our new long term partnership provides exclusive access to Citibank's extensive regional distribution network. It will enable AIA to apply our in-branch sales expertise, leading point-of-sale technology, and broad product range with the objective of considerably increasing the life and health insurance penetration of Citibank's large retail and commercial customer base across Asia.”
Mr. Tucker added, “This long term agreement is a natural fit for both AIA and Citibank to create value for our customers, employees, and shareholders through a demonstrated commitment to the future growth and development of the Asia-Pacific region.”
The new partnership arrangements will be implemented in each local territory during the course of 2014, AIA said.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].