The Financial Services Agency said on the 14th that the life insurance that foreign-affiliated Manulife Life Insurance had sold to small and medium-sized enterprises deviated from the original purpose of the insurance, which was excessively tax-saving. I issued an order and asked for thorough prevention of recurrence.
Regarding the sale of so-called "tax-saving insurance" that claims to save taxes, the NTA has repeatedly asked life insurance companies to review it, such as tightening tax rules, but according to the Financial Services Agency, Manulife life insurance has been for at least three years. It means that he continued to operate with the appeal of tax savings.
Specifically, the name of the contract was changed from a corporation to an individual, and after that, if the contract was canceled, the refund could be received in a way that reduced the tax burden, soliciting the owners of small and medium-sized enterprises.
In addition, the sales that claimed tax savings were systematically conducted, such as by the previous management team taking the lead from product development.
On the 14th, the Financial Services Agency issued a business improvement order to the company based on the Insurance Business Law, saying that such sales methods deviate from the original purpose of insurance and that the company's internal control system is inadequate.
The order requires that management responsibilities be clarified, recurrence prevention measures be formulated, steadily implemented, and reported on a regular basis.
In response to the business improvement order, Manulife Life Insurance commented, "We will take administrative sanctions seriously and work to strengthen our internal control system and ensure thorough compliance to prevent recurrence."