BNP Paribas to enter general insurance market, too

French group BNP Paribas, which is present on the domestic market through Cardif, a life insurance company, intends to expand onto the life insurance market by the end of this year. To this end, the French will open a subsidiary, which will operate either under the BNP Paribas Assurance brand, or under the Cardif brand. Cardif Asigurari (Cardif Insurance) started its activity in Romania in January, and sells life insurance products attached to credits, with the policies being bought by banks or consumer credit companies for groups of clients. These policies cover the risk of death, temporary or permanent invalidity and involuntary unemployment, which makes it impossible for loans to be repaid. “Also for general insurance, we want to offer bancassurance products,” stated Carmen Bahrim, general manager of Cardif Asigurari. The company will enter a new business segment this year, reinsurance, with the targeted companies being insurers affiliated to banks, from which the latter buy credit insurance. The initial investment of the French at Cardif Asigurari was five million euros, but as the company’s business increases, BNP Paribas intend to supplement funds to aid growth, according to the company’s manager.