Japan Post Insurance Issue Partial business suspension order for three months FSA and Ministry of Internal Affairs and Communications December 27 17:02
On February 27, the FSA and the Ministry of Internal Affairs and Communications issued an order to suspend insurance sales for three months due to a serious problem with its internal management system. Was issued. This is the first time a business suspension order has been issued to the Japan Post Group, and it is a form of urgent reform.
According to the announcement, the Financial Services Agency has confirmed that the sale of insurance for Japan Post Insurance has violated the law, such as giving explanations that are different from the facts and causing disadvantages to customers for making double payments.
Based on that, the quota that was difficult to realize at the sales floor was set, and as a result of being overemphasized, a problem occurred, and although the problem was triggered by customer complaints and press reports, the actual situation was not fully grasped. Has determined that there has been a serious problem with its management system.
For this reason, we have issued an administrative penalty ordering Japan Post Insurance and Japan Post to suspend insurance sales business for three months from the 1st of next month.
However, in consideration of local and other customers, exceptions are made for customers who want insurance contracts.
It also requested that three companies, including the parent company, Japan Post Holdings, issue business improvement orders requesting clarification of management responsibilities and submit a business improvement plan within next month.
On the other hand, the Ministry of Internal Affairs and Communications has taken the matter seriously and has issued an administrative penalty ordering Japan Post to suspend its insurance sales business for three months.
He also issued a business improvement order to Japan Post and Japan Post, calling for clarification of management responsibilities, regarding the problem with the Group's internal management system.
Regarding this administrative penalty, a situation occurred in which the former secretary-general of the Ministry of Internal Affairs and Communications leaked the situation of considering the disposition to Yasuo Suzuki, Senior Vice President of Japan Post, and was effectively fired.
This is the first time that the Financial Services Agency and the Ministry of Internal Affairs and Communications have ordered the suspension of operations after the Japan Post Group was privatized in 2007.