A tie-up between mobile phone carrier NTT Docomo Inc. and Nippon Life Insurance Co. will see Docomo selling insurance policies at its stores in Japan, sources close to the matter said Tuesday. The carrier is seeking new revenue sources amid government pressure to lower its charges.
The alliance will be announced later this week, the sources said. The sale of insurance policies by Docomo is expected to begin next summer, and it may consider offering products by other insurers, too, allowing customers to compare policies at its shops.
Docomo currently sells nonlife insurance plans online, but this will be the first time for it to sell life insurance over the counter. Nippon Life plans to dispatch staff to train Docomo employees.
The move comes as the government of Prime Minister Shinzo Abe presses mobile carriers to lower their rates and give households more cash to spend in other areas of the economy. The government launched a panel of experts to discuss the matter on Monday.
Docomo aims to diversify its sources of revenue while seeking to win back subscribers from rivals by expanding the range of its services, the sources said.
It is thought that Nippon life can expect synergies through its access to more sales channels using Docomo's some 2,400 outlets nationwide.
Docomo will first sell insurance policies at a few dozen stores before expanding the number in stages, the sources said.