Nippon Life Insurance Expands Marketing Reach with Sumitomo Mitsui Banking Corp.

In a significant move to expand its marketing reach, Nippon Life Insurance Co., Japan's largest life insurance group, has tied up with Sumitomo Mitsui Banking Corp. to sell insurance products through the new banking group's network. This partnership is part of Japan's liberalization of insurance sales, which will allow banks to sell insurance products through their branches starting April 1, 2001. The new bank group, formed by the merger of Sakura Bank and Sumitomo Banking Corp., will be among the top four banks in Japan and will have over 700 branches to sell insurance products.

Key Takeaways:

• Nippon Life Insurance has agreed to sell a new pension product through Nomura Securities, Japan's largest broker, but the deal is not finalized.
• The partnership with Sumitomo Mitsui Banking Corp. will allow Nippon Life Insurance to sell fire and casualty insurance policies through the bank's outlets.
• Nippon Life Insurance will form a nonlife company, Nissay Dowa General Insurance Co., to provide insurance products.
• The plan is to sell "housing-loan linked long-term fire and debt repayment insurance" and other products once the merger is complete.
• The partnership is a strategic move for Nippon Life Insurance, given Sumitomo Mitsui Bank's customer base in the two largest markets in Japan, Tokyo and Osaka.

Statistics:

• Japan's insurance sales liberalization will allow banks to sell insurance products through their branches starting April 1, 2001.
• Sumitomo Mitsui Banking Corp. will have over 700 branches to sell insurance products.
• Nippon Life Insurance is Japan's largest life insurance group.
• The new bank group, Sumitomo Mitsui Banking Corp., will be among the top four banks in Japan.

Sources:

• "Nippon Life Insurance Expands Marketing Reach with Bank Group" by Richard Hanson, Tokyo correspondent, A.M. Best Company, Inc.
• COMTEX News (http://www.comtexnews.com)