Life insurers to merge corporate pension ops

Japan’s top six life insurers plan to unify corporate pension management in the next six years or so as an aging society and rock-bottom interest rates dim the businesses’ prospects.

Corporate-Pension Business Service, a 50-50 joint venture run by Nippon Life Insurance and Dai-ichi Life Insurance will join forces with Japan Pension Co. (owned by Sumitomo Life Insurance), Meiji Yasuda Life Insurance, Mitsui Life Insurance and Fukoku Mutual Life Insurance.

The consolidation will happen in stages, with the completion slated for fiscal 2023, according to the Asian Review. The new entity will retain the Corporate-Pension Business Service name, and Japan Pension Service will be liquidated once all its functions are transferred. All jobs in both units are expected to be maintained.

The six parties will soon confirm plans to start discussions of this operational consolidation. Although the details of the merger have yet to be settled, they plan to centralise systems and management of policyholders, among other duties. Asset management functions will remain at the individual insurers.