Press Conference by Taro Aso, Deputy Prime Minister, Minister of Finance, and Minister of State for Financial Services

(Excerpt)

(Friday, October 23, 2015, 11:10 am to 11:29 am)

[Questions and answers:]

Q.

The other day NTT Docomo announced plans to start selling life insurance at its cellphone stores. Cellphone stores have been criticized for various issues relating to consumer protection: that contracted fee plans are difficult to understand, that explanations of contract periods are vague, and so on. As Minister of State for Financial Services, please share your thoughts on life insurance, a risk product, being sold at places like that. For example, there are frequent stories of supposedly two-year contracts being automatically extended, of fee plans including unnecessary elements, and of options being automatically included. What are your views on whether life insurance is an appropriate product to be sold at places like that?

A.

The Minister of Internal Affairs and Communications has also told me that there are a range of views concerning the terms of cellphone contracts, and I think Prime Minister Abe also stated his opinion on this at one time, so it’s not the case that I’m unaware. I don’t really understand the meaning of the question, but I guess you’re saying that if even telephone sales companies are unable to properly explain those kinds of telephone contracts, you wouldn’t expect them to be able to explain complex products like life insurance.

Q.

My question is that their explanations might be difficult for consumers to follow.

A.

I don’t comment on individual cases. I can only answer in general terms, but the sale of insurance products is regulated under the Insurance Business Act. Sellers need to register, receive education, perform various management tasks, and so on. So there are various conditions imposed on the sale of insurance by insurance companies and insurance sellers. For example, they have to provide customers with adequate and careful explanations of the details and so on of the insurance products. My response will therefore only be the general statement that the Financial Services Agency will provide guidance and supervision to ensure that the sale of insurance is managed by each insurance company and that insurance sellers attempt to sell the products in an appropriate manner.