NU Online News Service, April 2, 2003, 11:24 a.m. EST – The American Council of Life Insurers, Washington, says the Japanese government should do more to reform Japan’s Kampo postal life insurance system.
The Japanese government is moving the operations of the Postal Services Agency, the agency that controls Kampo, into a new, government-owned public corporation, Japan Post.
But, so far, the Japanese government has not put Kampo under the supervision of the Financial Services Agency, applied the same regulations that apply to commercial life insurers, ordered Kampo to join Japan’s life insurance policyholder protection fund, taxed Kampo as a private company, or done anything to restrict Kampo’s ability to develop new product lines, the ACLI complains in a statement about the creation of Japan Post.
“As Kampo strengthens its finances after acquiring public corporation status, it is likely to exert even more competitive pressure on its private-sector rivals,” the ACLI warns.
The Japanese government should not let Kampo underwrite new insurance products while it enjoys so many unfair advantages over commercial life insurers, the ACLI says.