Business / Corporate

Aflac's Japanese unit checking for improper contracts sold at post offices following Japan Post scandal

JIJI

Aflac Life Insurance Japan Ltd. has begun checking for any inappropriate contracts for its insurance products sold on commission by Japan Post Holdings Co. units, sources said Wednesday.

The investigation, launched this month, comes in the wake of the revelation last month of inappropriate sales practices involving products of Japan Post Insurance Co. sold through the nationwide network of post offices, which are operated by Japan Post Co.

Aflac’s cancer insurance products are sold by Japan Post and Japan Post Insurance.

Post offices began commissioned sales of Aflac products in 2008. The products are now available at approximately 20,000 post offices.

In the probe, Aflac will pick out cases such as double premium payments, frequent changes from one contract to another and customers being left uninsured.

The insurer is considering ways to check with each policyholder.

In response to the scandal, Nippon Life Insurance Co. has asked Japan Post to temporarily suspend commissioned sales of one of its insurance products. But Aflac has no plans to make a similar request, according to the sources.

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