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Nomura Securities Co. said Tuesday it has agreed with Nippon Life Insurance Co. to develop variable pension plans to be launched in October.

The two firms have already tied up in life insurance policies, but the brokerage aims to strengthen the relationship by introducing jointly developed products, company officials said.

Nomura is expanding its business as demand for variable pension plans is expected to grow in the future, industry analysts said.

It is also negotiating on tieups with other insurers, including foreign firms, to provide its clients with various financial products, the officials said.

Nomura and Nippon Life will adopt a lump-sum payment system for the product, under which benefits of long-term contracts will fluctuate depending on the results of fund management. The product will be sold to individuals at about 5 million yen per unit.

In the event of a policyholder’s death, a named beneficiary will be able to receive either the original principal or the managed fund, whichever is higher, the officials said.

Some 5,500 salespeople nationwide will gain the license to sell variable pension plans by October, they said.

Brokerage houses have been allowed to sell insurance since October 1998 under the government’s “Big Bang” financial deregulation.

Nikko Securities Co. has already tied up with foreign insurers, including Skandia Life Insurance Co., in selling policies, and Daiwa Securities Group Inc. is preparing for alliances with several insurers at home and abroad.

Nomura’s move is expected to intensify competition among brokerage houses in selling insurance, industry analysts said.

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