Union Bank inks bancassurance deal with Insular Life

Aboitiz-led Union Bank of the Philippines has entered into a “bancassurance” partnership with homegrown insurance giant Insular Life Insular Life Assurance Co. Ltd. (Insular Life), seeking to open up a new revenue stream for both financial institutions.

Bancassurance, increasingly becoming a key growth area for banks across the region, refers to the cross-selling of insurance products within the premises of the head office of a bank duly licensed by the Bangko Sentral ng Pilipinas or any of its branches.

Subject to regulatory approvals, UnionBank and its wholly-owned subsidiary, City Savings Bank, will distribute and sell the products of Insular Life, the first and largest Filipino life insurance company.

Through this partnership, Insular Life is seen to benefit from UnionBank group’s network of over 300 branches and offices with more than six million customers.

“At the end of each day, we UnionBankers always ask ourselves whether we served our customers in a way that helped them elevate their lives and fulfill their dreams. Before this partnership with Insular Life, I was always hesitant to answer ‘yes’ convincingly, as I thought we missed an important and basic component – insurance,” UnionBank president and chief operating officer Edwin Bautista said in a press statement on Monday.

“I am therefore delighted that we are finally completing our product suite, and even more thrilled that we are signing with a company that has a long history of being our partner. We see this partnership enduring for decades,” he added.

Insular Life is one of the most trusted insurance firms in the country, having been in operation for 106 years. It is the only Filipino life insurance company that has consistently ranked in the top three in the Philippine life insurance industry in terms of key business measures for life insurance companies — net income, assets, and net worth.

“As with any partnership, there is no greater feeling than that of finding the right bancassurance partner and together, offering products and services which impact Filipino families and communities in a profound way. For us in Insular Life, that’s UnionBank,” said Insular Life chief executive officer Nina Aguas.

“We were in search of a bancassurance partner who shares our values. We have a long tradition of steadfast commitment to our policy holders, a respected Filipino company in a Philippine industry dominated by foreigners. UnionBank is also a proud Filipino company, recognized internationally, as among the best of class in global league tables. Together, we will continue to create value for the stakeholders of our two great companies and assert leadership in our respective industries”, Aguas added.