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August 01, 2006 at 12:57 PM
The American Council of Life Insurers is continuing to raise questions about the process Japan is using to privatize its mammoth postal life insurance system.
Japan Post Corp., Tokyo, a holding company that will start out owning the postal service’s insurance, banking, mail and network operations, released an “implementation plan” for privatization Monday.
ACLI President Frank Keating has praised Japan Post for releasing the implementation plan and trying to make the implementation effort transparent.
But Keating has repeated the ACLI’s concerns, which have been expressed many times during the long Japan Post privatization planning process, that the privatized Postal Insurance Corp. must abide by the same requirements that apply to private Japanese life insurers, and that the company must avoid from using its vast size to smother private competitors during the transition to full privatization.
The new implementation plan “does not clarify how the PIC will become fully compliant with all of the same legal and regulatory requirements that already apply to private sector insurance suppliers,” Keating says in the statement.
