BNP Paribas Cardif Life Insurance signs a new partnership with Mirae Asset Capital to activate creditor insurance to improve housing stability

BNP Paribas Cardif Life Insurance announced that it has signed a new partnership on August 30 with Mirae Asset Capital to launch the creditor insurance to improve housing stability for rental tenants.

BNP Paribas Cardif Life Insurance is the life insurance subsidiary of BNP Paribas Cardif in Korea, the insurance arm of BNP Paribas. With the global headquarter’s expertise as a world leader in creditor insurance, the company has been leading the domestic creditor insurance market for more than 20 years. Mirae Asset Capital is a credit finance company that provides a variety of loan products, including lease deposit loan, and is expanding supply chain finance for socially vulnerable groups as part of its ESG management.

According to the <2022 Housing Condition Survey> released by the Ministry of Land, Infrastructure, and Transport (MOLIT), 96.0% of households living in public rental housing were satisfied with the housing support program, citing ‘affordable rent fee (50.4%)’ and ‘not having to move frequently (38.1%)’ as the reasons. As such, ‘housing stability’ is a fundamental factor that sustains the daily lives of tenants of public and private rental housing, but in the event of an unexpected accident, the tenant may face the failure of lease deposit loan repayment, and the stability of the tenant or the bereaved family may be threatened. In consideration of this, the two companies agreed to work together with the aim of strengthening the housing stability of the socially vulnerable at the level of private sectors in line with the government’s stance to expand the supply of rental housing.

Through this partnership, the two companies will promote joint inclusive finance practices as part of ESG management, by providing creditor insurance to the mortgage customers of Mirae Asset Capital with lease deposit loan.

Jonathan Oh, the President and CEO of BNP Paribas Cardif Life Insurance said, “Recently, the housing stability of the socially vulnerable has been greatly threatened by high interest rates, inflation, and housing fraud. The two companies, which have expertise in the areas of capital and insurance respectively, have joined hands to share the pain of the financially vulnerable. We are discussing various ways to strengthen the housing safety net by offering creditor insurance so that tenants can maintain their daily lives with their families in their precious homes even after the loan execution.”