Business · Companies · 2 days ago
Japan orders Prudential Life to suspend sales of new policies
Japan’s Financial Services Agency has ordered Tokyo-based Prudential Life Insurance to suspend business related to new insurance contracts from Tuesday through Jan.
31.
The order follows misconduct by sales staff, including improperly taking money from customers.
A lawyers’ investigation found that more than 100 current and former salespeople were involved in fraudulent or inappropriate transactions worth 5.2 billion yen over more than three decades.
The agency said Prudential failed to supervise its sales employees adequately and that systems meant to prevent misconduct were ineffective.
The company had already voluntarily stopped sales of new contracts in February, but further cases came to light afterward.
Services for existing policies, including insurance payments and benefits, will continue.
The agency also ordered reforms at Prudential’s parent company and partially suspended a group company’s business.
It has not said whether Prudential will be allowed to resume new sales after Jan.
31.
Japan’s Financial Services Agency ordered Prudential Life Insurance to suspend operations related to new insurance contracts through Jan. 31.
The order followed findings that the company failed to adequately manage and supervise sales staff and that safeguards against misconduct were ineffective.
A lawyers’ probe found more than 100 current and former salespeople were involved in improper transactions worth 5.2 billion yen over more than three decades.
The agency also issued an improvement order to Prudential Holdings of Japan and a partial suspension order to group company The Gibraltar Life Insurance Co.
Prudential Life can continue servicing existing contracts, including paying insurance money and benefits.
- Who
- Japan’s Financial Services Agency ordered Prudential Life Insurance Co. to suspend part of its business.
- What
- The company must suspend operations related to new insurance contracts; the agency also issued orders to its parent and a group company.
- When
- The order was issued Friday, Oct. 9, 2026. The suspension runs from Tuesday through Jan. 31.
- Where
- Japan.
- Why
- The agency found inadequate supervision of sales employees and ineffective systems to prevent misconduct.
This story does not have two clearly opposing sides.
No direct quotes in the coverage so far.
More than 100 current and former salespeople engaged in fraudulent or inappropriate customer transactions, according to a lawyers’ probe.
Prudential Life voluntarily suspended sales activities for new contracts.
Prudential Life said a third-party probe found transactions worth 5.2 billion yen.
The Financial Services Agency ordered the partial business suspension and issued orders to the parent company and a group company.
The suspension of operations related to new insurance contracts is scheduled to run.
- Affected company
- Prudential Life Insurance Co.
- Suspension period
- Tuesday through Jan. 31
- Misconduct findings
- More than 100 current and former salespeople
- Transaction value
- 5.2 billion yen ($33 million)
- Parent company
- Prudential Holdings of Japan Inc.
- Group company
- The Gibraltar Life Insurance Co.
Sources
Related news
Kugahara in Tokyo’s Ota Ward has a long history as an upscale residential area
Ota Ward neighborhood described as a wealthy area alongside Denenchofu
Mitsubishi Electric develops railway automation and obstacle-detection technology
Sugakiko Systems, operator of Sugakiya, acquires Domdom Hamburger
Employee moves from Shibuya to a 50-year-old resort condo in Zushi
Japan cruise companies target younger travellers with shorter, cheaper trips
Japanese brewer creates wobbly glass to encourage drinking water with beer
Japanese companies in China fall to lowest level in 16 years
Japan’s economy grew 1.4% in April-June, but domestic demand remained weak
Japan becomes India’s top source of FDI in first quarter of FY27
JR East to launch teppay digital payments on Oct. 20
