EastWest, Belgian partner get life insurance license

MANILA, Philippines - The joint venture between EastWest Banking Corp. and Belgium-based Ageas Insurance International NV is a step closer to operating a life insurance company after receiving a license from the Insurance Commission.

Antonio Moncupa Jr., president and chief executive officer of EastWest Bank, said the bank is very optimistic about the joint venture with Ageas Insurance International.

“Bancassurance is a vital strategy for us as it makes us a truly one-stop shop for our clients’ financial and insurance needs. We are confident that the diversification of our products to include protection solutions will enhance our competitive edge, increase customer loyalty, and create greater value for our customers while expanding our revenue stream,” he said.

The newly formed insurance company is seen to benefit from EastWest’s fast-growing customer base, consisting of 433 branch stores, representing the seventh largest distribution network among banks in the Philippines.

On the other hand, Ageas Insurance International contributes its vast experience in bancassurance from its successful businesses in Asia and Europe.

Last October, EastWest Bank receive the Bangko Sentral ng Pilipinas approval to infuse P500 million to EastWest Ageas Life which is a joint venture with Ageas Insurance International.

EastWest Bank entered into a 50-50 joint venture agreement with Ageas Insurance International in May last year. Under the plan, EastWest Bank and EastWest Ageas Life would enter into a 20-year exclusive distribution agreement.

EastWest Ageas Life CEO Hans Loozekoot is also excited about the opportunities for the new company as the Philippines is basically a one product market for life insurance. Over 75 percent of life insurance products sold in the country are single premium Universal Life Insurance contracts.

“Our approach is different. We believe in building and nurturing relationships for life with our customers. We will focus on offering insurance solutions which are relevant for the relatively young customers of EastWest,” Loozekoot said.

“Young people are generally more concerned with having a safety net. Therefore, we will provide advice on access to healthcare, children’s education, home loan protection and planning for the longest holiday of their life – retirement,” he added.

Loozekoot is focused on ensuring that customer will be ‘advised’ of the right solutions and that they experience excellent customer service.

Insurance commissioner Emmanuel Dooc believes that EastWest Ageas Life is a welcome force in developing the insurance industry in the Philippines.

“There is strong commitment evidenced by the joint venture’s P2 billion capitalization which is double our minimum requirement. The focus on protection products for youth and the mass market will help in the financial inclusion of Filipinos and will give them a better future,” he said.