Provisional Translation

Q.

My question is in relation to the misselling by Japan Post Insurance. According to our coverage, it was found that Japan Post Insurance was aware of the inappropriate activities as of June of last year. Supposing the company was aware of the inappropriate activities at the time when it sold shares in April of this year, this could be considered a breach of trust with investors. Does the FSA plan to request an explanation? How will this be handled going forward?

A.

We don’t comment on a particular disclosure. Speaking generally, however, if at the time of a sale of shares, the seller is aware of or has an understanding of something that has a significant impact on the operating results  of the company, it is important that those things are mentioned in the documents which disclose major risks. It is necessary that each company deal with that information properly, and we have spoken about this previously. It seems to me that they have failed to do so in this regard.

Q.

The in-house meeting materials clarify that there were over 1,000 cases of returning the full insurance premium amount to customers in the two years since April 2017. This may also include cases which constitute violations of the Insurance Business Act, yet there were only around 20 reports each year to the FSA. Do you plan to request an explanation from Japan Post Insurance about this?

A.

For insurance companies and agents, it is important to establish a proper solicitation stance so as not to damage the policyholders benefit or customer trust, and that is considered the norm in their industry. From that point of view, this issue represents a serious problem. So, Japan Post Insurance and possibly its parent company, Japan Post Holdings, will need to take measures toward appropriate customer management in the future. An investigation is underway, and upon finding the root cause, it will be important to pursue fundamental improvements. There’s a lot being said right now. Some doubt the knowledge of those selling policies. They sell them like selling time deposits without thinking, but it is our duty to find out the precise picture of the situation, so taking into account the results of the investigation, we must deal with this matter strictly as needed.