JAPAN POST INSURANCE COULD GET A ‘D’ FOR COMPLIANCE

Japan’s Ministry of Internal Affairs and Communications is thought likely to downgrade its compliance assessment of Japan’s Post business for financial year 2006 to a ‘D’ from its previous ‘C’ assessment, reports Nikkei . The Ministry has issued compliance grades since 2003, basing its assessments of ‘A’ down to ‘E’ on factors such as the degree to which business plans are met. Japan Post employees were understood to have repeatedly sold postal life policies to customers without conducting the legally required interviews. Problem transactions in financial year 2006 were above the target, despite a plan to address these lapses. The privatisation of Japan Post starts in October, when a committee in charge of approving new business fields for the privatised postal units will continue to examine Japan Post’s levels of compliance.