Japan insurers looking at industry reforms – Deputy PM

Japan’s Deputy Prime Minister, Taro Aso, has announced that the government, through the Financial Services Agency (FSA), is looking at implementing reforms to the life insurance industry to prevent further wrongdoings.

This was in response to a press conference question regarding the embezzlement of around ¥2 billion (US$19.3 billion) by a former employee of Dai-Ichi Life Insurance, which was revealed in October 2020. The company’s investigations have uncovered wrongdoings by three more former employees.

Aso is also Minister of Finance and Minister of State for Financial Services. While he declined to comment on matters pertaining specifically to the Dai-Ichi embezzlement case, Aso said that the FSA believes it is “crucial” for insurers themselves to investigate such matters. The insurers should then formulate effective improvement measures, as well as deal appropriately with any parties harmed by these incidents.

“I also understand that the Life Insurance Association of Japan is seeking to develop a more detailed picture of current circumstances by such means as conducting questionnaire surveys on the internal control systems in place for sales personnel at individual life insurance companies,” Aso said.

“The FSA would like to employ the Life Insurance Association’s findings to better ensure that life insurance companies operate their businesses in a customer-oriented fashion.”

Source: Insurance Business Asia