
May
19
BNP Paribas Expands into Taiwanese Life Insurance market
Posted on May 19, 2010 by Sergio Ulloa (G+)
Despite numerous foreign life insurance companies having left Taiwan in 2009, French financial services company, BNP Paribas, sees potential for growth in the mature Taiwanese life insurance markets with its bancassurance partnership with Taiwan Cooperative Bank. BNP Paribas initiated a life insurance joint venture company in April 2010, with the nation's largest provider of housing loans, Taiwan Cooperative Bank to sell a diverse selection of life insurance products. The joint venture, named BNP Paribas Assurance TCB Life Insurance Co. is structured on the bancassurance model and will use Taiwan Cooperative Bank's distribution channels, including almost 300 bank branches, to better reach customers. BNP Paribas controls a 49% stake in BNP Paribas Assurance TCB Life Insurance Co., while Taiwan Cooperative Bank (TCB) owns the remaining 51% of the joint venture. The bancassurance model has been Taiwan's greatest distribution channel in terms of enrolling new life insurance customers because of its ability to combine the strengths of deposit banking with asset management, with over 68.36% of all new life insurance premiums coming through bancassurance channels. BNP hopes to piggy back off of Taiwan Cooperative Bank's 6-million strong client base, making the joint venture an easy platform from which to offer a variety of life insurance products, including wealth management and credit insurance to bank customers. Insurance Companies Mentioned: BNP Paribas Assurance
