Global banking corporation Citigroup will be on the lookout for bids from major insurers that want to market their general insurance products in the bank’s branches throughout the Asia-Pacific region, according to sources.
The plan is part of the trend of banks looking to monetise their branch networks and customer bases in the face of growing demand for insurance in Asia.
Citi plans to sign a multi-year bancassurance deal for various general insurance products, including motor, property, and travel insurance. This could be one of the largest deals of its kind in the Asia-Pacific region, which will give the insurers access to Citibank’s 15 million customers in 12 markets, including Singapore, Hong Kong, mainland China, India, and Australia.
The banking group will start the search in a few days, and the deal is likely to last for 15 years and be worth US$500 million, an anonymous source told Reuters.
The deal’s final value will be based on several factors, such as how bidders structure upfront payments and determine the net present value of future commissions and deferred payments, said the source.
Maybank chairman to step down at the end of the month
Standard Chartered, Allianz
announce 15-year partnership
General Insurance to sell products via Canara Bank