Posted on May 19, 2010 by Sergio Ulloa
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
BNP Paribas Assurance is the property & casualty and life insurance branch of BNP Paribas, its products are marketed inside France through retail branches under the BNP brand name and branded outside of French retail business and internationally as Cardif. BNP Paribas Assurance is the 4th
largest life insurance company in France and has operations in more than 40 other countries. The company had EU18 billion in written premiums in 2007 and has 7,000 employs working around the globe.
Taiwan Cooperative Bank
Established in October 1946, the Taiwan Cooperative Bank reorganized and then went public in 2001. In 2006 the Taiwan Cooperative Bank (TCB) merged with the Farmers Bank of China, which was then dissolved, leaving TCB as the largest commercial bank in Taiwan with over 295 retail branches. It has since evolved into the largest provider of housing loans in Taiwan. Taiwan's Ministry of Finance remains the largest stakeholder in TCB, with 42.41% of the shares.