Japan Post Group Makes Report on Illicit Insurance Sales to Govt
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Tokyo, Dec. 23 (Jiji Press)--The Japan Post group reported Monday to the Financial Services Agency and the internal affairs ministry the results of in-house investigations into group firms' improper sales of "Kampo" insurance products and preventive measures.
Based on the report made by Japan Post Holdings Co. <6178> and its Japan Post Co. and Japan Post Insurance Co. <7181> units, the government bodies are expected to announce punitive measures as early as Friday.
According to people familiar with the matter, the FSA is going to partially suspend sales operations at Japan Post Insurance, or Kampo, for three months and order Japan Post Holdings to correct its governance flaws that led to the misconduct.
The ministry, for its part, is expected to issue business improvement orders to Japan Post and Japan Post Holdings.
The group firms announced last week that 670 of 12,836 Kampo insurance policies that had been suspected of being concluded illicitly were found to have actually violated laws and internal regulations. They also released reasons why such misconduct became rampant and ways to prevent it from happening again.
[Copyright The Jiji Press, Ltd.]