On Wednesday, the Financial Services Agency begin an on-site inquiry of Japan’s state-backed postal and financial services group, Japan Post Insurance Co. and Japan Post Co., following their confession of how they have mis-selled about 183,000 insurance policies.
The government of Japan is the largest stakeholder in Japan Post Holdings. Previously a state enterprise, it was privatized in year 2007.
According to informed sources, this examination into the units of Japan Post Holdings Co. may take up to 2 months before the financial watchdogs come to an agreement on what action should be taken. Conclusions might be revealed by the year’s end.
The inquiry of the two unites started this morning in Tokyo’s Otemachi business district. FSA intends to gauge the main reason behind the mis-selling, through which clients were charged for new and old policies both, even though the older ones had been dismissed.
FSA officials will go over sales manuals, and also interrogate workers at the Japan Post Insurance and post office, who were allotted the selling policies at branches throughout the nation.
A senior official at FSA stated how they want to thoroughly go over and establish the facts.
Taro Aso, the Finance Minister, stated at a press conference how they need to evade any situation which undermines the convenience of the clients. He added how they are questioning trust.
Japan Post Holdings has disclosed sales quotas made way to mismanagement and inappropriate sales.
The unit put off marketing its insurance products, however, it intends to resume by the 1st on October.
In July, the insurance company confessed to mis-selling nearly 183,000 policies to clients over the previous 5 years. Most of the clients were elderly.
Japan Post also saw how nearly 104,000 insurance policies appointed by its U.S.-based business associate, Aflac Inc., were inappropriately sold, leading to clients being uninsured or double-charged for some time.