Security Bank Corp. announced on Tuesday that it has entered into an exclusive bancassurance arrangement with FWD Life Insurance Corp. to take advantage of the country’s fast-growing life insurance business.
Bancassurance means selling an insurance product through a bank.
In a statement, Security Bank said FWD Group’s Philippine arm will start offering life insurance products to Security Bank’s customer base, subject to regulatory approvals.
The bank said the strategic partnership will create synergies beneficial to both companies.
FWD Life will have a distribution platform afforded by a leading universal bank in the Philippines, and Security Bank will gain from the innovation and expertise of a regional insurance player with strong growth ambitions in Asia.
Alberto Villarosa, Security Bank president and chief executive officer, said that the bancassurance tie-up with FWD Life would allow the bank to offer a comprehensive suite of financial products and services to its customers.
“Bancassurance is a fast-growing life insurance distribution channel in the Philippines, which is an under penetrated market compared to its Southeast Asian neighbors. We look forward to making best-in-class life insurance products available through our distribution network,” he said.
Villarosa said Security Bank chose FWD Life because of its ambitions in the Philippines, which match the bank’s own plans.
“We are excited about the prospects of this partnership with FWD,” he added.
Meanwhile, FWD Life will benefit from Security Bank’s strong client base as it commences operations in the country.
“This long-term, exclusive partnership complements our respective visions and growth aspirations. Enabling customer-friendly technology and enhancing overall customer engagement are imperative as we grow our business here in the Philippines, and this exciting partnership will benefit our customers,” said Julian Lipman, FWD Group chief operating officer and FWD Life chairman.
FWD Life announced in April that it got a license to operate in the country from the Insurance Commission, making it the first foreign life insurance company in nearly a decade to enter the market. FWD Life began its commercial operations in the Philippines in September.