Business / Corporate

Nippon Life asks Japan Post to suspend sales of insurance product

JIJI

Nippon Life Insurance Co. has asked Japan Post Co. to temporarily suspend the commissioned sales of one of its insurance products, it was learned Friday.

The request follows the revelation last month of inappropriate sales practices by Japan Post employees, involving policies for Japan Post Insurance Co. that were sold through post offices across the nation.

Japan Post, which manages the network of post offices, is currently considering its response to the request, it said.

It has complied with a request from Sumitomo Life Insurance Co. to stop promoting a medical insurance policy offered by the company, which had been sold together with a Japan Post Insurance product.

Aflac Life Insurance Japan Ltd. has yet to decide whether to suspend sales of cancer insurance policies offered by the company through Japan Post.

Nippon Life Insurance had entrusted Japan Post with sales of a foreign currency-denominated variable annuity insurance policy.

The product allows Nippon Life to manage through investments the insurance premiums paid by its policyholders. It has been handled at some 1,000 post offices nationwide.

In the wake of the scandal, Japan Post has decided to stop sales activities including visits and telephone calls in relation to Japan Post Insurance contracts until the end of August.

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