Sumitomo Life Insurance Co. has tied up with Shinkin Central Bank, an industry body grouping 343 "shinkin" small savings banks, to enable its policyholders to take out loans from automated teller machines at most of the member shinkin banks, Sumitomo Life officials said.
The arrangement, to begin in October, is the first ATM hookup deal between Shinkin Central Bank and an insurance company.
More than 300 of the industry group's 343 member banks are expected to allow Sumitomo Life policyholders to take out ATM loans using the insurer's membership cards.
Policyholders will be allowed to borrow part of their paid-in premiums up to a certain ceiling through the ATMs, the officials said.
More than 20,000 ATMs will be available for the service through the tieup, they said.
Of the insurer's policyholders, 3.17 million have been issued such membership cards.
Sumitomo Life has already concluded similar ATM hookup arrangements with major city commercial banks with urban branch networks, as well as with post offices nationwide, some regional banks and IYBank, which runs a network of ATMs at convenience stores, the officials said.
Shinkin banks see the tieup as a way to expand their customer base.
The insurer's cardholders annually engage in 1.4 million transactions for the loan service, worth 147.1 billion yen annually, the officials said.