The government has made no final decision on whether to allow financially troubled life insurers to cut the yields they have guaranteed to policyholders, Chief Cabinet Secretary Yasuo Fukuda said Friday .
“I do not think a final agreement has been reached,” Fukuda said during his daily media briefing. “We are still studying (the issue) due to a variety of conflicting views.”
Financial Services Minister Heizo Takenaka echoed Fukuda and said the Financial Services Agency continues to study the issue.
The comments came a day after the FSA presented the ruling Liberal Democratic Party with a proposal it drafted to allow the yield cuts.
The proposal urges life insurers finding it hard to continue operating to apply to the FSA for yield cuts at their own discretion. The agency will then decide whether to allow them to do so.
On Friday, the FSA also presented the proposal to the LDP’s ruling coalition partners — New Komeito and the New Conservative Party.
The agency is expected to decide whether to submit a bill to amend the Insurance Business Law to enable the yield cuts by the end of this month.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.