Yomiuri Shimbun conducts an investigation over mis-sold insurance after the group found out 6,327 cases of improper insurance sales.
Japan Post Insurance Co Ltd. said on Sunday, Dec. 15 that they’ve found out 1,400 cases that are violating the law. A special committee investigation has spoken to almost 12,000 clients to determine the mis-sold policies over the past five years.
After speaking with the clients, the group found out 9,000 incidents of insurance sales that violate the law or company rules. For the month of September this year, there are 6,300 reported cases of mis-sold insurance policies. About 58,000 clients had been contacted by the Japan Post.
The scandal broke last June when customers reported worse terms after switching to new insurance policies recommended by Japan Post salesmen. According to reports, some customers even paid the old and new products concurrently.
To make matters worse, some customers claimed that terms and conditions weren’t properly explained. For instance, the elderly were asked to switch to a new policy without the involvement of their families. This instance alone is a clear violation of internal rules, according to Japan Post.
Last September, Japan Post top executive vows to uphold public and customers’ trust, tracking the mis-sold policies for the past five years.
In addition to the declining public trust, Japan Post Co Ltd. also witnessed a decline in the sales for US Aflac Inc. insurer. Given this scenario, the company suffered huge losses. While the investigation is on-going, the company suspended active policy sales.
The shares of Japan Post Holdings dropped by 21 percent last September, a huge slump after being listed on the stock market.
Japan Post Insurance Co. Ltd released the result of the investigation Dec. 18, 2019.