JAPAN POST LAUNCHES NEW LIFE/MEDICAL PRODUCT RANGE

Japan Post, the Japanese postal service, has formally launched a range of new insurance products which combine whole life insurance and medical coverage, in the face of criticism from locally based private insurers. Japan Post will begin marketing the fixed-term whole life policies today, having been granted approval for the new kampo life products last November. The cover is available across the country’s post office network, and has been designed to offer individuals straightforward access to life products. However, life assurers operating in Japan see it as unfair competition because it is untaxed and is backed by state guarantees. Brad Smith of the US life association the American Council of Life Insurers said late last year that the backing for the scheme from the Japanese state meant that “instead of choosing the road to reform by installing a level playing field, the ministry ... has chosen to follow a path that, in our view, violates the Japanese government’s assurance to have free, fair and global markets”.