Sumitomo, BNP to develop low-cost Japan policiesApril 13 2017 by InsuranceAsia News Staff
BNP Paribas Cardif and Japanese banking major Sumitomo Mitsui Trust Bank are developing basic, low-cost insurance policies for Japanese consumers.
BNP Paribas will establish a subsidiary in Japan next year for the purpose, with the Sumitomo Mitsui Trust Holdings group bank likely to acquire a 20% stake. Financial details of the stake acquisition were not disclosed.
With the acquisition, Sumitomo Mitsui Trust Bank will gain board representation and claim the new entity as an equity-method affiliate.
According to reports, the Japanese bank and the French insurer will jointly develop insurance products, such as medical and cancer policies, targeting home loan applicants coming to the bank.
The policies will particularly target those in their 30s and 40s.
In fiscal 2015, Sumitomo Mitsui Trust Bank earned ¥17.5 billion (US$160 million) in commission from over-the-counter insurance sales.
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