NU Online News Service, March 23, 2004, 5:42 p.m. EST – The U.S. Trade Representative should help persuade Japan to rein in its postal life insurance system.[@@]
The American Council of Life Insurers, Washington, today launched an effort to make that case by issuing a study about the Japanese postal life system and holding a press conference on the topic.
Japan is studying ways to privatize the postal life system, which is popularly known as Kampo, but Kampo is taking advantage of the current lack of restraints by expanding efforts to compete with private insurers, ACLI President Frank Keating said at the press conference, according to a written version of his remarks.
Many Japanese consumers view Kampo as a welcome island of financial stability, but both foreign and domestic private life insurers argue that Kampo’s exploitation of its many privileges violates trade agreements that call for Japan to offer a level playing field for private insurers.
“We have been patient long enough,” Keating said. “The process of privatization must go forward without further expansion by Kampo.”
Once Japan privatizes Kampo, Japan must keep Kampo from using its huge size to dominate its competition, Keating added.