Insurance Commission approves bancassurance deal between PruLife, Robinsons Bank

MANILA, Philippines — The Insurance Commission (IC) has given PruLife Insurance Corp. of UK and Gokongwei-led Robinsons Bank Corp. the go-signal to execute their bancassurance agreement.

In a statement, Insurance commissioner Dennis Funa said the IC has approved the  partner ship betweenPruLife and Robinsons Bank, pursuant to the rules set by the regulator on bancassurance.

Funa said the approval of the bancassurance deal would make PruLife’s products more accessible to the public, as it would enable the British life insurer to tap Robinsons Bank’s 134 branches nationwide to distribute its products.

“While bancassurance is an effective strategy for both the banking institutions and insurance companies, it is the insuring public that will greatly benefit from these agreements. Through bancassurance arrangements, the public gains access to comprehensive financial protection,” Funa said.

The two companies entered into a strategic partnership last Jan. 9, with PruLife president Antonio de Rosas, Robinsons Bank president Elfren Antonio Sarte and Robinsons Bank chairman Lance Gokongwei signing the distribution agreement.

Under the deal, Robinsons Bank would distribute and sell PruLife’s insurance products to its customers spread over 134 branches nationwide. The agreement will initially last up to three years.

De Rosas said the partnership would benefit the customers of Robinsons Bank as it would provide them easy access to insurance products that suit their protection needs. 

“We look forward to building a strong relationship with Robinsons Bank as we continue to fulfill our goal of making life better for Filipinos through our life insurance products and solutions,” he said.

Sarte said the partnership would allow the bank to further serve its network of customers and tap the growing demand for life insurance products in the Philippines, which is driven by continued economic growth and an expanding middle class. 

Sarte said bancassurance would play a key role in the bank’s growth strategy in the next three years.

PruLife emerged as the fifth largest life insurance company in 2016, with premium income amounting to P18.12 billion. It has P86.27 billion in assets as of 2016, and a net worth of P4.17 billion.

Robinsons Bank ranked as the 19th largest commercial bank in the country as of end-September last year, with total assets of P94.41 billion.

Funa said insurance companies are starting to take advantage of bancassurance to gain a stronger foothold in the local insurance market.

He said there are several bancassurance structure models that may be adopted by the bank and insurers, including a joint venture, a distribution agreement, and a financial conglomerate.