Fraud at Prudential Life Attributed to Sales-Oriented Culture

Tokyo, Oct. 8 (Jiji Press)--A corporate culture that placed excessive emphasis on sales performance was cited as a cause of fraud by employees of Prudential Life Insurance Co. who defrauded customers of money, a third-party investigation report showed Thursday.

The report said that it was difficult for officials in managerial posts to oversee high-performing sales employees as the corporate culture had weakened the authority of managers over top performers.

The Tokyo-based life insurer will review its compensation system, which is heavily weighted toward acquiring new contracts, and introduce a guaranteed minimum salary scheme in 2027.

"We sincerely apologize once again for the concern and inconvenience caused," Prudential Life President and CEO Hiromitsu Tokumaru told a news conference. "We take very seriously the situation we have caused, which has shaken the foundation of trust."

Three executives, including Tokumaru, will voluntarily return 30 pct of their monthly remuneration for three months to take responsibility for a series of problems, including a scandal that emerged during the company's voluntary suspension of sales activities.

[Copyright The Jiji Press, Ltd.]