Prudential Plc and Standard Chartered Plc have marked a significant milestone, celebrating 25 years of their strategic bancassurance partnership, the longest-running of its kind in both Singapore and Asia. The collaboration, which began in 1999, has averaged “double-digit” sales growth over the past 15 years, driven by continuous product innovation across their health and wealth segments.
John Chow, Chief Partnership Distribution Officer at Prudential Singapore, highlighted that the partnership has thrived by expanding geographically, refining its wealth and health offerings, and leveraging technology to enhance customer journeys. “We have deepened our market penetration across all customer segments, from affluent to personal mass,” Chow noted.
Today, this partnership spans 11 markets in Asia and Africa, reflecting its broad regional influence. Both companies attribute their success to adapting to evolving customer expectations, which demand personalized, seamless, and convenient experiences.
“Customers today expect personalized, convenient, and seamless experiences, and both companies have collaborated to respond and adapt to these needs,” Chow added.
Despite the challenges posed by evolving regulations and market competition, both Prudential and Standard Chartered are optimistic about the future of bancassurance, which remains a major distribution channel for insurers. They foresee significant opportunities for growth, driven by continuous innovation.
The impact of their collaboration is evident. Prudential reported a 20% increase in new business profit from bancassurance in the first half of 2024, totaling $465 million. This growth was fueled by strong annual premium equivalent sales in Taiwan, Hong Kong, and Singapore, with sales through the bancassurance channel rising by 27%.
Jeremy Ong, Head of Bancassurance for Singapore at Standard Chartered Bank, emphasized the evolution of their offerings to cater to the changing needs of affluent clients. “As affluence levels increased in the past decade, we pivoted to meet the widening needs of our clients,” Ong said.
The partnership has expanded beyond savings and protection plans to include legacy planning solutions for clients looking to transfer wealth. In 2023, Standard Chartered introduced two US dollar-denominated insurance products, which saw sales double in 2024, now accounting for 30% of their bancassurance sales.
Furthermore, Prudential and Standard Chartered recently enhanced their employee benefits by switching medical insurance providers. Starting in April 2024, the bank’s employees now have access to a broader range of health services, including general practitioner care, specialist consultations, and annual health screenings.
Looking ahead, both companies are focusing on technological advancements to improve their bancassurance offerings. Prudential’s Chow pointed to artificial intelligence (AI) as a key tool for designing more personalized products, such as automated underwriting, digital claims processing, and AI-driven customer insights. These innovations are expected to streamline customer experiences and increase engagement.
Ong also emphasized the importance of quick product development and timely distribution to meet customer needs. “This requires a strong collaboration between both parties to create and launch products in response to feedback from clients and the sales force, all while balancing wealth and protection needs with business viability,” Ong said.
As Prudential and Standard Chartered continue to innovate and collaborate, their longstanding partnership is poised to evolve further, shaping the future of bancassurance in Asia and beyond.
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