Business

Japan Post ordered to report about inappropriate insurance sales by regulators

JIJI

Regulators have ordered Japan Post Holdings Co. to report about inappropriate insurance sales at its Japan Post Insurance Co. unit, informed sources said Saturday.

The order was issued by the Financial Services Agency and the internal affairs ministry on Thursday, the sources said.

Japan Post Holdings was ordered to report about the inappropriate sales when it releases an interim report on the scandal in late September, the sources said.

The regulators believe that Japan Post Holdings has failed to provide proper oversight over the insurance unit and Japan Post Co., the group’s mail and parcel delivery arm, and that the group’s information sharing has been insufficient.

The agencies are considering imposing administrative penalties, such as a business improvement order, on the Japan Post group for what they see as its governance problems, the sources said.

The sales irregularities, including having customers make duplicate premium payments, are believed to have affected a total of some 183,000 policy contracts sold by the mail delivery unit over the past five years.

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