Japan Post confirms 22 cases of illegal insurance sales practices

Insurance Business Magazine | July 30, 2019

Following its admission of mismanagement of over 90,000 policies from its insurance arm, Japan’s postal operator has confirmed 22 cases of forgery and other illegal practices in selling insurance policies. According to a report by The Mainichi, Japan Post Co. has reported the cases to the Financial Services Agency (FSA), the country’s financial watchdog. One of the suspected motives behind the illegal sales practices are excessively high sales quotas expected from postal workers. The anomalies, which came to light earlier this month, have allegedly been ongoing for several months. These led to Japan Post Co. suspending marketing activities of insurance products. Furthermore, other insurers that have been selling products through the postal network have started conducting their own investigations.

Spotlight

Insurance institutions aren’t known for chasing trends. And maybe you wouldn’t want them to be. For an industry where customers are best served by the sober assessment of risk, there’s something reaffirming about the industry’s steady bearing in FinTech’s choppy wake. But transformative forces are there at the edges, under the surface, looking for a way in. They’re in the technology that’s taking the human element out of risk. They’re showing up along the value chain, bringing price transparency and brand-new products. They’re in adjacent sectors, where pay-per-click threatens commissions and customers must insure assets they use but don’t own. And they’re in the data, where the future can be told.

Spotlight

Insurance institutions aren’t known for chasing trends. And maybe you wouldn’t want them to be. For an industry where customers are best served by the sober assessment of risk, there’s something reaffirming about the industry’s steady bearing in FinTech’s choppy wake. But transformative forces are there at the edges, under the surface, looking for a way in. They’re in the technology that’s taking the human element out of risk. They’re showing up along the value chain, bringing price transparency and brand-new products. They’re in adjacent sectors, where pay-per-click threatens commissions and customers must insure assets they use but don’t own. And they’re in the data, where the future can be told.

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