Japan Post Insurance Suspected of Misleading Customers

Economy

Tokyo, June 24 (Jiji Press)--Japan Post Insurance Co. <7181> has encouraged some of its customers to switch to insurance products that could be disadvantageous to them, informed sources said Monday.

An internal investigation found that in November 2018 alone, there were some 5,800 cases in which customers were advised to cancel their existing insurance policies and switch to new products with higher premiums for almost the same coverage, the sources said.

As the investigation is ongoing, the number of such transactions is expected to increase, the sources said.

At a press conference on Monday, Masatsugu Nagato, president and chief executive officer of Japan Post Holdings Co. <6178>, the parent of Japan Post Insurance, said that although he does not think any laws have been broken in relation to the transactions, the Japan Post group will learn from this episode to always put customers first.

Of some 21,000 transactions in November 2018 in which products were switched, some 30 pct led to a rise in insurance premiums for almost the same coverage, according to Japan Post Insurance.

[Copyright The Jiji Press, Ltd.]

Jiji Press