FWD Hong Kong has signed a long-term bancassurance agreement with Bank SinoPac, marking a strategic move to broaden its market presence among high-net-worth individuals and commercial clients.
The collaboration is set to offer SinoPac customers access to insurance products that cater to wealth management, asset diversification, and legacy planning.
Mr Ken Lau, managing director of Greater China and CEO of FWD Hong Kong, said the partnership underscores the potential for mutual growth.
“Together, we will bring bank customers a wide range of insurance solutions and services to enhance wealth growth and legacy planning, empowering them to achieve their financial goals at different life stages and changing the way people feel about insurance,” he said.
As part of its portfolio, FWD offers products like the “MaxFocus” life insurance and savings plans. These plans are designed to meet the needs of affluent customers, emphasising long-term investment potential and adaptable options for inheritance planning.
Bank SinoPac operates over 120 branches across Taiwan and Hong Kong, providing wealth management and financial planning services.
The bancassurance partnership highlights FWD Hong Kong’s growth. For the first half of 2024, the company reported a 33% increase in first-year premiums (FYP), significantly outpacing the industry’s average growth of 12%, based on provisional figures from the Hong Kong Insurance Authority (IA).
The rise was driven by higher demand among both local clients and mainland Chinese visitors (MCVs). Premiums from local customers increased by 36%, while those from MCVs rose by 25%. Local clients contributed 50% of the insurer’s annual premium equivalent (APE) for new business, highlighting the company’s balanced focus on domestic and cross-border markets.
Mr Lau attributed the growth to FWD’s dual-market strategy targeting both the Hong Kong market and the Greater Bay Area.
All distribution channels contributed to the company’s performance, with tied agency sales seeing a 54% rise in APE, bancassurance growing by 43%, and the brokerage channel increasing by 11%. Digital and direct sales channels also saw a 44% year-on-year increase.
FWD’s sustained growth reflects its focus on leveraging technology and expanding its partnerships, positioning the insurer to compete effectively in Asia’s evolving insurance landscape, reported Insurance Business.