Japan Post Holdings announced findings that almost 1,500 of their post office workers engaged in improper sales of insurance and financial products.
The company is currently undergoing an internal review and investigation at a cost of US$32 million.
The part of the investigations that concluded on February 19 also found 1,761 rule or legal violations by Japan Post’s sales clerks. The figures are expected to rise further, as there are suspected violations in around 7,000 contracts.
Hiroya Masuda, Japan Post’s new chief executive and president, said at a press briefing that the company will not have sales targets for financial products, insurance policies or investment funds in 2020. Only after an extensive review of internal sales practices should targets be reconsidered, added Masuda.
Masuda was appointed in January this year. He emphasised that the company’s first priority under his tenure is to restore customer trust and provide assistance for affected policyholders.
In December last year, the Financial Services Agency (FSA), Japan’s regulator, ordered Japan Post and Japan Post Insurance to stop new sales of new insurance products — from January 2020 to March this year. The FSA also ordered the subsidiaries to drive business improvement strategies.
In 2019, Japan Post conducted an internal investigation of 183,000 policies, out of which there were 13,000 cases of improper sales.
The company is to release an updated report in March.

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