Insurer: 6327 misselling cases

Japan Post Insurance Co Ltd stated recently that it discovered 6,327 cases of improper sales in a previously flagged misconduct matter that is still under investigation and that 1,400 cases among them are suspected of violating the law.

This is the first time the unit of Japan Post Holdings has admitted that some of the cases have broken the law. 

Another group company, Japan Post Bank Co Ltd separately said earlier that it had improperly sold investment trust products to elderly customers in about 19,500 cases. Shares of the the Japan Post Group have been impacted by the statement and plummeted, while sales of the insurance policies have been suspended.

The company further explained that most of the cases that fell foul of the law involved false explanations provided to customers. The company has so far scrutinised about 68,020 cases, accounting for about 37 percent of total misconduct, it said, releasing an interim report on the investigation.