2 Japan Post Firms Inspected over Insurance Sales Scandal
Tokyo, Sept. 11 (Jiji Press)--The Financial Services Agency began on-site inspections of Japan Post Co. and Japan Post Insurance Co. <7181> Wednesday over an insurance sales scandal involving the Japan Post Holdings Co. <6178> subsidiaries.
Over the course of the roughly two-month-long investigation, the agency will examine the background of the inappropriate sales practices, as well as the Japan Post group's internal management regime, to assess whether there were any violations of the insurance business law.
The agency sent investigators to the two companies to hear from related officials and examine detailed minutes of board meetings, management meetings and unofficial meetings to grasp the extent to which management and senior officials knew of the wrongdoings.
The agency also plans to press the parent company on its responsibility over internal management and corporate governance. The group has been under fire for a corporate culture that apparently neglects customer interests.
Japan Post Insurance allegedly concluded more than 180,000 contracts in which policyholders may have been placed at a disadvantage due to inappropriate insurance sales practices by employees of Japan Post Co. partly resulting from extreme sales quotas imposed on them. Such cases include ones in which policyholders made double premium payments or became temporarily uninsured.
[Copyright The Jiji Press, Ltd.]