Japan's Financial Services Agency on the 9th issued a partial business suspension order to Prudential Life over problems including sales staff extracting money from customers. The order requires the company to suspend insurance solicitation and contracting from October 13 until the end of January 2027, with a similar order issued to group company Gibraltar Life and a business improvement order issued to parent company Prudential Holdings of Japan. The suspension order mainly covers new insurance sales by sales staff, while policyholder protections for existing contracts such as coverage, payment of claims and benefits, contract changes, and cancellations will continue, and new insurance sales through Gibraltar Life's agency channel are also excluded from the order. In the disciplinary action, both companies are required to clarify management responsibility, thoroughly investigate money-related misconduct by sales staff, handle customer matters such as compensating victims, discipline those involved, review sales promotion and management systems, foster an organizational culture that emphasizes compliance and customer protection, and strengthen governance, and they are ordered to undergo a review by outside experts of the formulation and implementation of business improvement plans. Both companies and the holding company must submit business improvement plans by November 30 and report on their progress every three months thereafter. At Prudential Life, former employees and others had defrauded customers of more than 6 billion yen in total, and at Gibraltar Life, improper receipt of money under the guise of investments by a former employee had also come to light.
Prudential Financial, Inc.Japan's FSA issued a partial business suspension order to Prudential Life and Gibraltar Life, with a business improvement order to parent Prudential Holdings of Japan, over sales-staff misconduct.
