AIA and RHB in bancassurance tie-up

AIA and RHB Bank have executed a term sheet to enter into a 10-year mutually exclusive bancassurance relationship in Malaysia. The products involved are individual and group conventional life insurance. The products could be sold through RHB branches, telemarketing, direct marketing and worksite marketing.

Under the eventual agreement, AIA will pay RHB bank RM50 mil upfront. Takaful products may also be included in the product range, subject to a review by 15/12/2009. In the event that AIA is not able to add takaful products to the bancassurance product range, AIA will pay RM50 mil to RHB bank to enable the latter to source takaful products from another insurer or takaful operator.

Source: Bursa Malaysia