INSURERS LINE UP AGAINST ASSURERS AND BANKS RE JAPAN POST

The planned long-term privatisation of Japan Post has already had one side effect; life assurers joining hands with banks against non-life insurers. While the life assurers and banks have protested strongly against any expansionist policies from Japan Post while it is still a government operation, claiming that Japan Post would be exploiting its state-owned status. Non-life insurers, however, were silent at the government’s postal privatisation panel, mainly, claims Nikkei , because they want to use Japan Post as a means to distribute their products. Japan Post submitted a plan to sell non-life products from October 2007, when the privatisation process starts. Non-life players are keen to exploit Japan Post’s 24,000 branches to distribute their products, as well as to gain access to the operation’s 250,000 staff and tens of thousands of vehicles. Agents have also objected to the Japan Post plans of non-life insurers, fearing that their distributive role would be severely undermined if motor or homes insurance could be bought at the local post office.