The chairman of the Life Insurance Association of Japan expressed approval Wednesday about amending a law to allow life insurance firms to cut the yields they guaranteed to policyholders.
Shinichi Yokoyama told the House of Representatives Financial Affairs Committee that he will not oppose the planned introduction of new regulations on insurance yields, "if they are designed to secure ways to protect policyholders."
The Lower House committee is discussing a revision to the Insurance Business Law to allow struggling life insurers to cut the yields they promised to policyholders before going bankrupt. The guaranteed yield is the rate of investment return an insurer promises policyholders.