NU Online News Service, Dec. 23, 9:53 a.m. – AFLAC Inc., Columbus, Ga., says it believes it will have to pay more than $21 million to Japan’s Life Insurance Policyholder Protection Corp.
The Japanese Financial Services Agency wants the country’s surviving life insurers to contribute about $655 million to help shore up the guaranty fund corporation, which protects policyholders against company failures.
In return, the Japanese government would supply $3.4 billion in backing and change the bankruptcy laws to allow for the rehabilitation of failed life insurers, AFLAC says.
AFLAC, which dominates the Japanese cancer insurance market, opposes the proposal but expects the guaranty fund to adopt it at a vote scheduled for Friday.
AFLAC Chairman Daniel Amos has issued a statement praising the Japanese government’s decision to support the life insurance guaranty fund but criticizing the request for additional industry contributions.
“We believe the industry has already done more than its share, and AFLAC should not have to pay for other companies’ mistakes,” Amos says in the statement.