Insurance Scandal To Result In Ouster Of Japan Post CEO And Heads Of Two Of Its Firms

Following the huge scandal in Japan over the issue of the illegitimate sales of insurance products by the Japan Post Holdings Co and its two subsidiaries, the CEO of the firm as well as the chiefs of its two subsidiary firms are set resign while taking responsibility for the scandal, claimed reports quoting information from sources with knowledge of the matter.

The reports quoted sources saying that the top executives who are set to resign very soon include Japan Post Holdings President Masatsugu Nagato, Japan Post President Kunio Yokoyama, and Japan Post Insurance President Mitsuhiko Uehira. It is expected that the announcement of the resignations will be made later this week, claimed reports.

As of December 15, more than 12,000 cases of policy sales are suspected of having broken the local law of Japan or the prevalent company regulations in the country, said reports claiming information derived from an internal investigation conducted by the company.

Reports also said that out of the 12,000 cases, the company has already been able to confirm that 670 of the cases had violated various section of the current laws or rules of Japan government corporate activities.

Reports also claimed that Japan Post Insurance and Japan Post, the two companies that allegedly had sold the faulty insurance policies, are both likely to get an order from the Financial Services Agency very soon directing both the companies to temporarily stop selling their products and policies and stop related business activities for the time being.

Sources quoted in the media also claimed that the regulator is also likely to take a tough stance on the issue and is likely to announce tough measures against Japan Insurance and Japan Post which could include both the companies being directed not to sell any new insurance products for a specific period of time which could be as long as three months.

Japan Post Holdings and Japan Post, meanwhile, will likely be issued with business improvement orders by the Ministry of Internal Affairs and Communications.

(Adapted from XinhuaNet.com)



Categories: Economy & Finance, Regulations & Legal, Strategy, Sustainability, Uncategorized

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