Zurich Life Insurance Co. have agreed to jointly create a life insurance company with Nissen Holdings Co., a major mail-order firm , in Japan around 2009.
Nissen currently offers products similar to insurance policies through a cooperative. But the company has to apply for government approval to become either a regular insurance firm or a company that offers small-premium and short-term insurance by the end of March next year to continue insurance business following the enactment of the revised law regulating life insures in April 2006.
Nissen has as many as 20 million customers through its mail-order operations and will spend 2-3 billion yen to establish the insurance firm.
The company already has the Famix cooperative as its subsidiary, and offers insurance products for hospitalization and death through the subsidiary. Currently Famix has 70,000 members.
For Zurich, this cooperation will be good opportunity to expand its insurance business in Japan by reaching Nissen's broad customer base.
They will discuss the details of their partnership, concerning ownership percentages and what types of insurance products they will offer.
Nissen hopes to learn Zurichi's insurance operation skills by co-working although the firm originally was seeking ways to launch an insurance firm by itself.
Zurichi insurance, based in Zurichi, Switzerland, operates insurance business in more than 170 countries all over the world. According to Fortune Global 2007, Zurichi insurance is the fourth largest global insurance company in the world.