JAPAN’S LIFE MARKET RECEIVES RECORD NUMBER OF CONSUMER COMPLAINTS

Consumer officials have predicted that the number of consumer complaints in Japan’s life insurance market received during 2007 will exceed 16,00o – a total that would be almost 3,000 greater than in 2006 and more than double the 7,523 received just three years previously in 2003. The record number of complaints follows last year’s discovery of a series of non-payments from Japanese assurers which resulted in a regulatory clampdown in the sector. In addition to the consumer affairs complaints, the industry body the Life Insurance Association (LIA) of Japan anticipates receiving more than 10,000 complaints for 2007. The most common cause of customers’ concern was the non-payment of fees resulting from medical coverage, particularly among senior policy holders – more than half of the complaints came from those over 60. Another target for complaining customers were over-complicated, investment-based life policies and the mis-selling of variable rate, personal pension policies. In order to highlight the situation, the LIA intends to launch a website containing all consumer complaints later this year.