DBS, Aviva ink 5-year extension of business cooperation
Updated: 2009-07-31 07:22
By Melody Cheung(HK Edition)
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HONG KONG: With traditional lending suffering from low profit margins as banks try to weather the financial crisis, the high commissions generated in the insurance sector are providing banks incentives to deepen ties with insurance companies.
Singapore-based DBS, which first teamed up with British insurance giant Aviva in 2001, has extended their insurance partnership for 5 more years, from 2010 to 2015.
Shaun Meadows,Aviva's Singapore and Hong Kong CEO, suggests that customers and clients are preoccupied with financial stability and protection amid the current global economic turmoil.
"Aviva's research has found that consumers are worried about their financial situation in the current economic volatility. DBS and Aviva's continued partnership will ensure that consumers have a range of quality insurance products to meet their evolving needs," he said.
To meet these client needs, Aviva has introduced new products, including investment-linked innovations. Aviva, the world's fifth largest insurance group by premiums paid, has sold insurance products in the local market through DBS's bank network since 2001. The joint venture allows DBS to participate in the lucrative insurance business, while enabling Aviva to promote its products though bank assurance, brand name recognition and the branch network of the local bank.
In the meantime, Aviva will provide a six-month full-time training program for staff who will be sent to DBS branches later this year - a total of 10 branches in Hong Kong and 30 in Singapore.
While targeting Singapore and Hong Kong, the collaboration aims at opening up new markets in the Asia Pacific region, including the mainland, India and Taiwan.
(HK Edition 07/31/2009 page3)