UCPB bancassurance biz yields P1 B premiums

The start-up bancassurance business of UCPB yielded over P1 billion in total premiums last year and is expected to provide the bank with a steady source of topline revenue with high growth potentials.

In the nine months following its launch in April, the bancassurance partnership with life insurer Cocolife and non-life insurance company provider UCPB General Insurance Co. Inc. generated P1.05 billion in premiums from the sale of insurance policies to the bank’s customers.

Bancasssurance is an arrangement between an insurance company and a bank whereby the former sells its products to the latter’s clientele.

Merline Dela Cruz, vice president for bancassurance at UCPB, said the bank sees the volume increasing dramatically this year as the bank continues to expand its loan portfolio and deposit base.

Dela Cruz said the bank “would double the new business’ production by year end.”

According to Dela Cruz, a key driver of volume growth would be the variable life insurance that the partnership intends to push aggressively this year. The product is a life insurance coverage with an investment component.

UCPB president and CEO Higinio Macadaeg Jr. said the bank’s partnership is paying solid dividends for the bank.

He said bancassurance dovetails perfectly with the bank’s thrust to leverage the nationwide reach of its network of 188 branches and focus on the retail and consumer markets.

“Our individual depositors and borrowers present a huge market for insurance products,” he said.

Macadaeg said their clients would need more risk cover from the basic motor, fire and life insurance to health, retirement and estate plans, as well as new investment outlets amid the progress in their businesses and careers.