He and are looking for synergies to jointly market the reverse mortgage, a product that will allow people over 65 to supplement their income through housing. Its irruption will be carried out through a new joint venture or ‘joint venture’, which will exclusively distribute the product in Spain through the networks of both partners.
The reverse mortgage is a type of loan that allows the mobilization of resources as a complement to retirement income, being able to enjoy its use until the death of the owner. For its subscription it is necessary that the property is without charges.
Santander and Mapfre, which are already partners in insurance, indicated that the new company will work on the design, configuration and conditions of the reverse mortgage, “focusing on offering senior clients valuable services adapted to their needs, with simple processes to facilitate the contracting of the product”.
The new company, where the bank and the insurer will share the capital 50%, will operate, once the mandatory authorizations have been obtained, as a financial credit establishment.
In addition, and to supplement income, the entities will offer to supplement their income with life annuity insurance that guarantees them the same level of income for life.
The alliance goes back three years when they signed an agreement whereby Mapfre became the bank’s sole provider for business and automobile insurance, commercial multi-risk, SME multi-risk and civil liability insurance.
Its joint venture Santander Mapfre Seguros y Reaseguros began operating with Comprehensive Multi-Risk Insurance, which incorporates into a single platform different products aimed at businesses, the self-employed without premises and companies, as well as livestock and agricultural farms; and later it would launch the operation in automobiles.
In April of last year, they strengthened ties through their commercial network in Spain, which is made up of almost 3,000 offices, more than 2,240 commercial employees and 8,000 professional mediators.
low subscription
The reverse mortgage is a product with more than a decade of existence that has been defended by experts, entities and even organizations such as the Bank of Spain without having been widely commercialized.
The market to which it is directed is fabulous since there are more than 8 million people over 65 who could monetize their home, live in it until the end of their days and their heirs could recover it later if they pay the debt assumed by the owner with the bank or insurer with which it was subscribed.
At present, entities such as Caser, which also works with Óptima Mayores, or Catalana Occidente have it in their catalogue. Along with Santander and Mapfre, other companies such as Santalucía had also shown interest in the product, and even CaixaBank had a pilot, but its subscription is still very limited.
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