Japan Post to Delay Restart of Insurance Sales

Politics

Tokyo, Sept. 25 (Jiji Press)--Japan Post Co. and Japan Post Insurance Co. <7181> are considering delaying the restart of their insurance sales activities, which have been suspended since mid-July due to the revelations of inappropriate practices, from the planned date of October, informed sources said Wednesday.

The inappropriate sales practices, including cases of letting policyholders make double premium payments when switching policies, may have affected more than 180,000 insurance contracts, according to the Japan Post Holdings Co. <6178> units.

The companies concluded that they now need to focus on investigating damage to customers and working on preventive measures, the sources said. Options under consideration include resuming insurance sales activities in January after the investigation is complete, they said.

Masatsugu Nagato, president and chief executive officer of Japan Post Holdings, is expected to hold a press conference as early as Monday to announce details, the sources said.

The Japan Post group late last month said it would resume insurance sales activities on Tuesday after taking steps to prevent any repeat of the wrongdoing. But regulators have been taking a cautious stance because it is expected to take time before unraveling the overall picture of the scandal and providing relief to affected customers.

[Copyright The Jiji Press, Ltd.]

Jiji Press