Comment on “Comprehensive Review of the Progress of Postal Privatization”
13 March, 2009
The Life Insurance Association of Japan (LIAJ) Chairman Kenji Matsuo issued the following statement today in response to the review report published by the government’s postal privatization commission:
The LIAJ firmly believes it is important to integrate the former postal life insurance business into free and fair private life insurance market, so that the privatization would lead to a vibrant economy and increase the benefits of Japanese people.
The Basic Policy on the Privatization of the Postal Services prescribes “equal footing” with private companies. Also, the Basic Principles set out in Article 2 of the Postal Privatization Law require measures to ensure equivalent conditions of competition between Japan Post and other corporations engaged in like business operations. The LIAJ holds a view that “ensuring a level playing field” not impeding fair competition should continue to be an essential prerequisite for postal privatization.
Whether Japan Post Insurance is ready to expand their operations is another point in question in the discussions of the said commission and for approval of new services/products. From the view point of customer protection, the LIAJ is of opinion that it is necessary for Japan Post Insurance to have a proper management system in place for underwriting and/or payout, before it expands the product line or raises the issue limit of insurance amount.
The LIAJ hopes that the privatization will steadily take place in accordance with the Postal Privatization Law and the Implementation Plan Concerning the Business Succession of Japan Post, and that the government commission will regularly review the progress to this end.
