Vietnamese bank expands into non-life insurance sector

Other banks which made the same move are VietinBank, Agribank, and HDBank.

Vietnamese bank, Techcombank, announced it will acquire an 11% stake in TCGIns, a new non-life insurance company with a charter capital of ~$20m, reported Vietnam Investment Review. 

TCGIns will offer a variety of insurance products, including property, cargo, aviation, motor vehicle, fire and explosion, and health insurance. 

Chung Ba Phuong, the company’s chairman and legal representative, brings extensive experience from previous leadership roles at Techcombank, Generali Hong Kong, Manulife, and American International Group. 

Techcombank’s entry into non-life insurance follows similar moves by Vietnamese banks such as VietinBank, Agribank, and HDBank.

The demand for non-life insurance has been highlighted by the recent damage caused by Typhoon Yagi, underscoring the need for greater risk protection. 

Techcombank's shift into this sector also follows challenges in cross-selling life insurance, after the bank ended its bancassurance partnership with Manulife, which had previously been a key revenue source through upfront fees and commissions.