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August 2, 2021 -

BNP Paribas Cardif Life Insurance launches ETF Variable Insurance 2.0’ embracing Active/Thematic ETF

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BNP Paribas Cardif Life Insurance announced the launch of ‘ETF Variable Insurance 2.0’, a next generation ETF variable insurance product lineup that enables both Passive/Active funds and ETF/EMP investments within one product. Upgraded ETF Variable Insurance 2.0 will provide an expanded investment portfolio by embracing Active/Thematic ETFs.

BNP Paribas Cardif Life Insurance is the life insurance subsidiary of BNP Paribas Cardif in Korea, the insurance arm of BNP Paribas.

Since 2017, BNP Paribas Cardif Life Insurance has been at the forefront of providing easy and convenient ETF Managed Portfolio (EMP) solutions by launching various variable insurances consisting of ETFs with low fund cost. The company now focuses on ‘Active ETF’ which has been showing continuous growth in the global ETF market at an average annual growth rate of 50% since 2010[1], and upgraded its flagship variable insurances.

The core of BNP Paribas Cardif Life Insurance’s newly introduced ‘ETF Variable Insurance 2.0’ is that it expands the customers’ investment options so that they can enjoy the advantages of Passive/Active funds and ETF/EMP investments within one product. Firstly, ▲this product lineup includes ‘Active ETF’ which pursues alpha returns based upon the fund manager’s active decision on the underlying portfolio allocation, along with the existing Passive ETF tracking the market index. In addition to this, it also provides ‘Thematic ETF’ which aims for future growth-type investment. Furthermore, ▲ETF Variable Insurance 2.0 proposed a new investment portfolio titled ‘Active Solution’ EMP’ focusing on Active/Thematic ETF as its underlying portfolio.

As a result, customers can flexibly utilize passive and active investments according to market conditions either by EMP which offers convenient asset management, or by selecting individual fund by themselves. If a customer chooses EMP, he/she can make a professional long-term investment easier and more conveniently through quarterly auto rebalancing based on investment advisory information provided by Samsung Asset Management, which holds the No.1 ETF market share in Korea.

Younghwa Choi, Vice President of BNP Paribas Cardif Life Insurance, said, “ETF variable insurance is our flagship product that is steadily gaining popularity among customers looking for long-term investment solutions. Now, we have entered the ‘era of 2.0’ as our ETF variable insurance evolves to the next generation by offering various investment strategies along with Passive/Active funds and ETF/EMP investments. We will continue to strive to provide customers with better investment experiences and values through new attempts reflecting the latest investment trends.”

[1] Source: Korea Capital Market Institute, Growth of Active ETFs in US and its implications