Financial firms' income from insurance sales up 7.2 pct in 2008

SEOUL, March 2 (Yonhap) -- South Korean financial firms' income from selling
insurance policies rose 7.2 percent in 2008 from a year earlier, the country's
financial watchdog said Monday.

Local financial firms including lenders and savings banks posted a combined
profit of 10.6 trillion won (US$6.79 billion) by selling insurance policies at
their branches in 2008, compared with 9.87 trillion won the previous year,
according to the Financial Supervisory Service.
Bancassurance, the sale of insurance policies at counters at banks and other
financial firms, was introduced in South Korea in the local market in August
2003.
As of the end of last year, a total of 109 financial firms had an agreement with
insurance companies for bancassurance. Sixteen banks are selling insurance
policies at their branches with 20 brokerage houses and 73 savings banks
providing the service.
The watchdog said business conditions for bancassurance are deteriorating, hit by
the global financial turmoil, adding it plans to beef up monitoring of the market
to ensure customers are fully informed on the details of insurance products.
sooyeon@yna.co.kr
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