Public insurer Japan Post Insurance is at the heart of a scandal. Several malfunctions are noted in the management of its insurance contracts.
The insurer faces issues of non-compliance and mismanagement in over 90 000 insurance policies over the past five years. Nearly 22 000 insured paid double premiums for a period of 6 months or more, 47 000 customers did not benefit from coverage though having paid their premiums and 23 900 people received termination of their contract unjustly. For the record, customers complaints have already been filed regarding their inability to amend their insurance policies.
According to Japan Post Co, the group’s postal unit, these malfunctions were caused by sales personnel who voluntarily carried out these fraudulent acts. The company is considering the appointment of a committee to investigate this matter. The insurer also intends to provide the policyholders with due compensations.
For its part, the Financial Services Agency intends to conduct its investigation and force the Japanese insurer to review its marketing schemes. Ultimately, sanctions might soon be imposed on the insurer.
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