IC clears Allianz-PNB bancassurance tie-up

MANILA, Philippines - The Insurance Commission (IC) has approved the acquisition by Allianz SE of PNB Life Insurance Inc., bringing to nine the life insurance companies with bancassurance arrangements with Philippine banks.

IC commissioner Emmanuel Dooc said bancassurance agreements are mutually beneficial to the banks and insurance companies and opens more opportunities for the public to get protection.

“Bancassurance likewise plays a major role in the government’s overall target of financial inclusion and developments. This allows the public to have more access to wide range of financial products and services such as savings, credit, payment and remittance, investments and insurance,” Dooc added.

In 2014, the combined total premium of six insurance companies with existing bancassurance agreements accounted for 34 percent of the total premium of the entire insurance industry.

The six insurers and their bank partners are: Philippine AXA Life Insurance and Metropoitan Bank & Trust Co. (Metrobank); BPI Philam Life Assurance Corp. and the Bank of the Philippine Islands (BPI); SunLife Grepa Financials and the Rizal Commercial and Banking Corp. (RCBC); Generali Pilipinas Life Assurance Co. and BDO Unibank Inc.; Manulife Chinabank Life Assuance Co. and China Banking Corp.; and PNB Life Insurance and Philippine National Bank (PNB).

Last year, FWD Life Assurance tied up with Security Bank Corp., along with Ageas Life Insurance Corp. and East West Banking Corp.

Meanwhile, the Allianz-PNB deal was a result of the 12-year, bancassurance joint venture agreement between Allianz and PNB which will operate under the name Allianz PNB Life Insurance Inc.

This marks the re-entry of Allianz to the Philippine insurance market after its pullout from the Philippines after a five-year joint venture with Pioneer Allianz Life Assurance Corp.

Dooc said the new partnership would allow Allianz to enter into the market with an established nationwide distribution network through PNB’s 660 branches.

In 2013, Republic Act (RA) 10607, or the Amended Insurance Code took effect, which institutionalized bancassurance allowing the cross-selling of insurance products within the premises of Bangko Sentral ng Pilipinas- licensed banking institutions.