BNP Paribas Cardif Life Insurance announced that the company developed the ‘Insurance Risk Score (IRS) Discount Rider’ for the first time in the industry using credit data to provide premium discount benefits. It had obtained an exclusive sales right for this rider for 3 months from the Korea Life Insurance Association (KLIA)’s New Product Review Committee on July 1st.
BNP Paribas Cardif Life Insurance is the life insurance subsidiary of BNP Paribas Cardif in Korea, the insurance arm of BNP Paribas, and the world leader in creditor insurance.
Nowadays, the use of big data is emerging as an essential competitiveness of financial companies to create various customer values. BNP Paribas Cardif Life Insurance, which has been at the forefront of providing ‘Creditor Insurance’ in the domestic insurance market, developed the industry’s first ‘Insurance Risk Score Discount Rider’, while paying attention to consumer’s ‘credit data’, whose management has become more important with the recent surge in household debt and interest rate hikes.
The ‘Insurance Risk Score Discount Rider’ is a special contract that provides a discount on insurance premiums using the ‘Insurance Risk Score’, which indexes the level of insurance of deadly accidents according to personal credit data. By presenting a new big data utilization model along with credit data, BNP Paribas Cardif Life Insurance acquired the exclusive sales right in recognition of its ▲originality and ▲progressivity.
Additionally, it has been also recognized for its ▲effectivity encompassing customers, insurance companies, and the insurance industry. With the ‘Insurance Risk Score Discount Rider’, customers can get a motivation for continuous credit management/improvement, insurance companies can effectively manage insurance risk by encouraging customers to improve their credit, and insurance industry can also expand the scope of their role from the traditional insurance business to consumer credit management.
Considerations in terms of protecting the rights and interests of financial consumers were also reflected. The higher the Insurance Risk Score, the greater the premium discount benefits, but there is no premium surcharge due to the low score. In addition, the product was developed only in the direction of improving customer benefits through a premium discount system, for example, even if a subscriber’s Insurance Risk Score falls, he/she can maintain the previous premium discount rate. Furthermore, customers can recalculate the Insurance Risk Score once a year, so they are continuously provided with insurance premium discounts and opportunities to increase discounts.
‘Insurance Risk Score Discount Rider’ will be first applied to new creditor insurance product to be launched in the second half of the year. BNP Paribas Cardif Life Insurance, which is taking the lead in promoting domestic creditor insurance, is also planning to implement a ‘Credit Care Program’ that provides integrated support for customers’ credit management in stages. Through the ‘Credit Care Program’, the company will continuously provide content that helps with credit management, and conduct donation campaigns to support low- and medium-credit users, thereby not only supporting customers’ credit management, but also contributing to solving social problems such as household debt and debt inheritance issues.
Jonathan Oh, the President and CEO of BNP Paribas Cardif Life Insurance said, “As big data has become a hot topic in the overall financial industry, healthcare insurance products using health data have been around for a long time. We have been contemplating for a long time how to utilize big data that can provide new experiences and benefits to our customers, and we are happy to be recognized for the industry’s first ‘Insurance Risk Score Discount Rider’, which was introduced by consolidating our creditor insurance expertise. As the ‘Credit management’ goes beyond loans and is the fundamental of a healthy financial life, we expect that many consumers will agree with our efforts and receive practical benefits.”