BNP Paribas Cardif Life Insurance signed a Memorandum of Understanding (MOU) on August 4 with an online mortgage loan interest rate comparison platform ‘Bank Mall’ and General Agency (GA) ‘FP Korea’ to activate Creditor Insurance, which functions as a safety net for the risk of unexpected accident during the repayment period.
BNP Paribas Cardif Life Insurance is the life insurance subsidiary of BNP Paribas Cardif in Korea, the insurance arm of BNP Paribas.
BNP Paribas Cardif Life Insurance’s Creditor Insurance prevents the inheritance of debts by paying off the remaining loan on behalf of the borrower when he or she becomes difficult to repay the loan due to an unexpected accident or illness. As Bank Mall’s main service is to compare interest rates of mortgage loan that the borrower should deal with for a long period of time, BNP Paribas Cardif Life Insurance seeks an opportunity to activate Creditor Insurance based on mortgage loan, which accounts for more than 70% of total household loan in Korea, through this trilateral MOU. FP Korea will be in charge of sales and contract management of Credit Insurance which is to be provided via Bank Mall.
Jonathan Oh, the President and CEO of BNP Paribas Cardif Life Insurance, said, “As household loan growth in the first half of this year was at an all-time high again, a risk management for a long-term debt repayment especially for mortgage loan, which accounts for the largest portion of household asset, is now essential. Through BNP Paribas Cardif Life Insurance’s Creditor Insurance, we hope that Bank Mall’s loan customers will be able to protect their property and family from the debt inheritance even in unexpected accidents”.
Based on this MOU, the three companies will introduce online Creditor Insurance through the Bank Mall in September.