BNP Paribas Cardif Life Insurance, the Korean subsidiary of BNP Paribas Cardif, the insurance arm of BNP Paribas held the ‘2nd Insurance Knowledge Day 2013’ on October 16 in Westin Chosun, Seoul.
As household loans are increasing remarkably due to the economic slowdown, so do the risks where debts are not able to be repaid in the event that the debtors pass away suddenly, suffer from total permanent disability (TPD), or are diagnosed with cancer, etc. This trend has been threatening the soundness of financial institutions.
Against the backdrop of such growing risk, BNP Paribas Cardif Life Insurance held the ‘2nd Insurance Knowledge Day 2013’, where it raised the public awareness of the value of creditor protection insurance and stressed its benefits for both the debtors and the lenders. The event was attended by over 90 guests from banks, credit card firms and loan institutions.
Creditor protection insurance are insurance products repaying the remaining loan balance taken by a policyholder or the initial amount of the insurance premium when the policyholder passes away, is diagnosed with TPD, or cancer. It protects policyholder’s families from bearing the liabilities and prevents financial institutions from bad loans. The product is common in many advanced markets including Europe, Japan and Taiwan. It is also a fast-growing market in the US and South America. In some countries, debtors are required by law to subscribe creditor protection insurances in order to apply for credit loan services.
For the first time in Korea, BNP Paribas Cardif Life Insurance introduced creditor protection insurance to banks and credit card firms in 2002 and 2004, respectively. It also offers ‘(NP) The Safe Credit Insurance’ which pays off auto loans, and ‘(NP) The Safe Credit Protection Group Insurance’, which pays off remaining loans of debtors.
Jean-Christophe Darbes, CEO of BNP Paribas Cardif Life Insurance, said: “Creditor protection insurance is an advanced financial service which provides benefits to debtors as well as lenders. With the ‘2nd Insurance Knowledge Day 2013’, BNP Paribas Cardif Life Insurance plans to proactively promote creditor protection insurances, thereby safeguarding the policyholder’s credit and contributing to strengthen the soundness of the financial institutions’ debt financing.”
The first edition of ‘Insurance Knowledge Day 2013’ took place in May and was related to the use of VUL(Variable Universial Life Insurance) for retirement planning.