Global insurer and reinsurer Allianz has signed a Memorandum of Understanding (MoU) with Vietnam-based IT corporation, FPT Group, which cements the firms’ intentions to enter into a joint venture agreement to establish a new general insurance company in Vietnam.
The MoU, which was signed on the side-lines of the World Economic Forum (WEF) in Davos and attended by Vietnam Prime Minister, Nguyen Xuan Phuc, Allianz Board Member Sergio Balbinot, and FPT’s Founder & Executive Chairman, Dr. Truong Gia Binh, proposes combining the two businesses.
Under such a joint venture, Allianz would provide expertise and advice on best practices in insurance product customisation, financial tech and asset management, while FPT would offer access to distribution channels and affiliates, as well as advise Allianz with local market knowledge.
Balbinot commented: “We are delighted to embark on the next stage of our partnership with FPT Group at an exciting time for the development of the Vietnamese economy. Allianz is well placed to support the protection needs of local consumers by delivering innovative digital insurance solutions for a demographic ready to adopt them.”
The joint venture is expected to support Allianz in the rapidly expanding Vietnam insurance sector, as it looks to develop innovative digital insurance solutions that really meet the needs of local consumers.
“Today’s announcement outlines our intention to expand Allianz’s world-leading digital insurance products and services into Vietnam – a key emerging market and one of the fastest growing economies in Asia. FPT is the right partner for Allianz to enhance its ability to build a strong market position in the country, and further underscores our ambitious growth strategy in the wider region.
“We look forward to contributing to the continued development of Vietnam’s fast-growing insurance sector, boosting financial inclusion for the under-protected, and reaching an expanding pool of digitally-minded consumers,” said George Sartorel, Regional Chief Executive Officer (CEO), Allianz Asia Pacific.
The country’s economy is expanding fast, and coupled with the fact Vietnam has high internet and mobile telephone penetration, it’s well placed for greater access to digital insurance solutions.
Dr. Truong Gia Binh said: “FPT and Allianz are the perfect match to address the needs of the growing Vietnam market. Allianz has the protection expertise to provide accessible and innovative insurance services, while FPT provides the local knowledge and a digital network reaching an expanding, educated and youthful population.
“Our partnership is exciting for the future growth potential of Vietnam, and we look forward to many successes.”