Japan Post Admits To Mis-Selling 180,000 Insurance Policies

  • Category:Other
TOKYO - Japan Post Holdings Co said Wednesday it mis-sold around 183,000 insurance policies to customers over the past five years, double the number previously announced.

The postal and financial services group pledged to investigate all 30 million of its insurance policies after cases surfaced in which customers were left at a disadvantage after contract renewal and similar policies were sold to the same individual.

Japan Post Insurance Co, the insurance arm of Japan Post Holdings, had previously admitted to engaging in questionable sales practices affecting more than 90,000 policies.

The postal group will contact customers via mail and telephone by early September to verify that policies comply with holders' wishes and release its findings by the end of September.

"I feel heartbroken that this has resulted in a huge loss of trust in the post office. I offer my deepest apologies," Japan Post Holdings President and CEO Masatsugu Nagato said at a press conference Wednesday.

Nagato said he was not aware of any cases of unlawful practice when the group sold shares of its insurance unit earlier this year.

Given that sales quotas had led to the gross mismanagement and unlawful sales, the Japan Post group is planning to scrap such quotas assigned to post office workers in the current fiscal year. From fiscal 2020 onwards, goals will be revised "for the benefit of customers," Nagato said.

The insurance company has decided to halt sales of its own, as well as third-party, products, while an independent panel investigates the matter. The country's dominant postal group was privatized in 2007.



Comment(s) Write comment

Trackback (You need to login.)