Japan’s Prudential Life Ordered to Halt Biz for over 3 Months

Tokyo, Oct. 9 (Jiji Press)--Japan’s Financial Services Agency on Friday ordered Prudential Life Insurance Co. and Gibraltar Life Insurance Co., both part of the U.S. Prudential Financial Inc. group, to suspend some operations for more than three months over fraud committed by their employees.

The FSA also issued a business improvement order to Prudential Holdings of Japan Inc., the parent company of the two Tokyo-based life insurers, calling for stronger corporate governance.

Under the partial business suspension order, which runs from Tuesday to the end of January 2027, the two insurers will be prohibited from entering into new insurance contracts or selling insurance products, so that they can focus on rebuilding their management and oversight systems.

The financial watchdog called for reforms to prioritize legal compliance and customer protection over sales, and ordered the submission of a business improvement plan by the end of November.

This is the first time the FSA has ordered a life insurer to suspend operations since it took such action against Japan Post Insurance Co. in 2019. Prudential Life has voluntarily refrained from making new sales since February, and the FSA’s order will further delay the resumption of its sales activities.

[Copyright The Jiji Press, Ltd.]