Japan Post Insurance's improper sales forced a three-month halt and CEO resignations

Japan Post Insurance, sold through Japan Post's nationwide post-office network, had sold about 183,000 policies over the five years to fiscal 2018 that were potentially disadvantageous to holders. An internal investigation eventually identified more than 12,000 improper sales cases, including instances of double-charged premiums, false explanations and other legal or rule violations.

In December 2019 Japan's Financial Services Agency ordered Japan Post Insurance and Japan Post Co to halt sales of insurance products for three months from January 2020. It also issued business improvement orders to the two units and their parent, saying sales goals lacked feasibility and rationality and that corporate governance was dysfunctional.

The scandal forced the resignation of the CEOs of Japan Post Holdings, Japan Post Insurance and Japan Post Co. It also forced customer redress and delayed the Japanese government's plan to sell around $10 billion of Japan Post Holdings shares to fund reconstruction in areas hit by the 2011 earthquake and tsunami.