Japan Post Holdings Co. said Wednesday the group will examine all 30 million insurance contracts created for Japan Post Insurance Co. that have been in effect during the past five years, after evidence surfaced of inappropriate sales practices.
The parent company said the Japan Post group will refrain from active sales of insurance products at post offices, run by Japan Post Co., for the time being, except for cancer and automobile insurance products.
The group will accelerate its investigations into the sales irregularities through visits to customer homes and other means. Probes covering the 30 million contracts, including already expired policies, will be conducted by mail and telephone by early September to verify that policies comply with holders’ wishes. The organization will release its findings by the end of September.
“I feel heartbroken that this has resulted in a huge loss of trust in the post office. I offer my deepest apologies,” Japan Post Holdings President Masatsugu Nagato told a news conference.
Japan Post Co. President Kunio Yokoyama said robust sales quotas had been set for new contracts, admitting that the quotas contributed to the inappropriate sales.
Japan Post Insurance reported Monday that it had been aware of insurance sales irregularities in April, when Japan Post Holdings sold shares in the unit, raising suspicions that the group was aware of the inappropriate sales at the time of the share sale.
“The inappropriate cases were reported at a board meeting of Japan Post Insurance in May,” Nagato said, adding that allegations the group were aware of the problem when they sold the shares are completely incorrect.