UNOFFICIAL TRANSLATION
Although the Company pays close attention to provide English translation of the information disclosed in Japanese, the Japanese original prevails over its English translation in the case of any discrepancy.
December 3, 2020 | |
Company name: | Japan Post Holdings Co., Ltd. |
Representative: | MASUDA Hiroya |
Director and Representative Executive | |
Officer, President & CEO | |
(Code number: 6178, First Section of | |
the Tokyo Stock Exchange) | |
Contact: | IR Office (Phone: +81-3-3477-0206) |
Progress of the Business Improvement Plan, etc.
JAPAN POST HOLDINGS Co., Ltd. (Chiyoda-ku, Tokyo; MASUDA Hiroya, Director and Representative Executive Officer, President & CEO), JAPAN POST Co., Ltd. (Chiyoda-ku, Tokyo; KINUGAWA Kazuhide, President and CEO) and JAPAN POST INSURANCE Co., Ltd. (Chiyoda-ku, Tokyo; SENDA Tetsuya, Director and President, CEO Representative Executive Officer) hereby announce that the companies reported the progress of the business improvement plan (as of the end of November 2020), based on "Administrative Dispositions against Japan Post Insurance" dated December 27, 2019, and the status of the investigation of policies at Japan Post Insurance to the JP Reform Execution Committee.
The progress of the business improvement plan and the status of the investigation of policies at Japan Post Insurance are described in the following pages.
Overview of the Primary Measures Under the Business Improvement Plan | Material 1 |
Establishing an appropriate sales promotion scheme
I. Creating a healthy corporate culture and establishing an appropriate
sales promotion scheme
Foster a customer-first mindset throughout the organization, and build a system in which the practice of insurance policy solicitation based on this mindset is appropriately evaluated.
(1) Review the code of conduct reflect the customer-first philosophy
Establishment of a code of conduct (solicitation policy, Basic Policies for Customer-first Business Operations) based on the principle of "providing insurance coverage founded on high ethical standards which take the original roles and mission of life insurance into account" (February 2020)
Embodiment
(2) Set the Standard of Japan Post Insurance Sales
Formulation of a standard sales model, whereby "products are proposed upon accurately identifying true coverage needs based on customers' concerns for the future and their current situations using a survey form, etc." (February 2020)
First line (post offices, call centers, service centers, etc.)
II. Checks and controls
Prevent the occurrence of policies that are not in line with the intentions of customers
- Implement multi-layered checks from policy applications to the conclusion of a policy
- Check at post offices
- (Pre-application /post office) Expand the pre-checking function for underwriting (Added to the scope in April 2020)
- (Post-application /post office) Conduct verification of customers' intentions by post office managers (Added to the scope
in April 2020)
(Going forward, establish a system environment that enables utilization of enhanced customer information (New function added in October 2020))
- Check at Japan Post Insurance
-
(Post-application /Japan Post Insurance) Conduct verification of customers' intentions by the application call center (January 2020)
Conduct verification of customers' intentions by the call center for cancellations (January 2020) - (Conclusion of a policy / Japan Post Insurance) Conduct verification of customers' intentions at the time of the underwriting process through checking of all policies (Added to the scope in April 2020)
Instill among all employees
(3) Instill a code of conduct based on the customer-first philosophy
- Training for all employees
Continuously conduct training for the understanding and establishment of the code of conduct based on the customer-first philosophy, including the training for instilling the "Standard of Japan Post Insurance sales" (started in February 2020)
- Implementation of coaching-based management training
Conduct managerial training for shifting from the sales promotion management-driven management method to a management/guidance method using coaching-based approach (Training implemented from June 2020 onward)
- Establishment of system for promoting comprehensive consulting (April 2020)
1)Renamed Financial Services Division of post offices as "Financial Consulting Division" and established a new "Financial Consulting Administration Division" at each branch
2)Renamed the Sales Capabilities Development Institute as the "Consultant Training Center," which now reports directly to the head office
3)Newly appointed "Consulting Advisors," instructors capable of providing instruction on comprehensive consulting
Consistent | |
(4) Revision of the system including (5) | Improvement of the mechanisms for |
sales targets | reviewing coverage |
Control
Second line (head office, etc.)
- Checks and controls
- Strengthen systems to realize appropriate solicitation management
Reinforce staff in the areas of solicitation management, compliance, and customer services departments
- Reinforce the structure of solicitation quality instruction specialists (Organizational revision in April 2020)
- Strengthen and revise the investigation systems at the second line of the Japan Post Insurance head office (Organizational revision in April 2020) and branches
- Detection of complaints and in-depth analysis of the causes (In stages from December 2019 onward)
- Controls including increasing the strictness of criteria for fact-finding and disciplinary action
- Conduct fact-finding that does not rely on confession (November 2019)
- Record and keep a voice record and a video record of the solicitation process (Expanded to all consultants from August 2020 for voice recording and keeping)
- Take disciplinary actions according to the condition and level of improper solicitation (Added suspension of solicitation and warning) (Implemented from April 2020 onward)
- Take rigorous disciplinary actions for managers of sales personnel found to have engaged in improper solicitation (Implemented from July 2020 onward)
Third line (Internal Audit Department)
1)Set sales targets involving higher solicitation quality (No sales targets set for FY2020)
2)Increase the weight of various evaluation criteria for solicitation quality
3)Review the ratio of basic salary to sales incentive for the sales personnel (April 2020)
4)Review the sales personnel commendation based on customer- first sales activities to put greater emphasis on solicitation quality (no sales personnel commendation for Japan Post Insurance products in FY2020)
-
Conditional cancellation system (January 2020)
Achieves seamless continuation of coverage under the system at the time of policy rewriting - Policy conversion system
When adjusting coverage, allows for a payment of insurance benefit within the scope of coverage under the policy prior to the adjustment, even when insurance benefit is not payable under the policy after the adjustment (Permission acquired in November 2020)
- Checks and controls
- Strengthen Internal Audit Department
-
Reinforce the human resources and organizational structure, and audit with higher efficacy by strengthening risk assessment
(Decided on organizational revision in February 2020) - Strengthen coordination with the Audit Committee (Continuously implement from February 2020 onward)
-
Reinforce the human resources and organizational structure, and audit with higher efficacy by strengthening risk assessment
Establishing an appropriate sales promotion scheme | Strengthening of the appropriate solicitation quality control scheme | ||
(Instill customer-first sales) | (Prevention of policies that are not in line with customer intentions) | ||
Strengthening governance by the Board of | |||
Oversight by management | |||
Directors, etc. | |||
III. Information sharing and governance
Upon strengthening governance based on accurate information, thoroughly implement the PDCA cycle, and steadily carry out and instill improvement measures to prevent recurrence
(1) Thoroughly implement the PDCA cycle
Identify and analyze various information including customer complaints, as well as employee opinions received at the contact point for business consultation (February 2020) and the external point of contact exclusively for financial services (March 2020) with higher risk sensitivity, and verify the effectiveness of the improvement measures and make revisions upon in-depth discussions (Implemented in stages from April 2020 onward)
(3) Monitor improvement measures and regularly announce the progress
Establish a task force for implementing various improvement measures (January 2020), which is being monitored by a third party, and announce the status on a regular basis
Status of progress of policy investigations in order to regain customers' trust | Material 2 |
- Investigations of specified rewriting cases/ Investigations of all insurance policies
- 【Investigation of specified rewriting cases】
- In regard to the investigations of specified rewriting, we have mostly finished responding to customers as of the end of March 2020, except for cases that cannot be finished due to reasons attributable to customers.
- In regard to the sales personnel investigations in connection with the investigations of specified rewriting cases, we have identified 311 cases (the number of sales personnel involved: 413) of violations of laws and regulations and 3,342 cases (the number of sales personnel involved: 2,218) of violations of internal rules as of November 18, 2020.
- 【Investigations of all insurance policies】
- In the investigations of all insurance policies, we received approximately 1,037 thousand replies as of November 15, 2020. We completed responding to customers, by the end of March 2020, except for cases that cannot be finished due to reasons attributable to customers. We continue responding customer requests sincerely.
- Additional investigations of all insurance policies
- In regard to the additional investigations of all insurance policies, we have mostly completed responding to customers and continue responding to customers carefully for cases that cannot be finished due to reasons attributable to customers.
- In regard to the sales personnel investigations of additional investigations of all insurance policies and other investigations, we have identified 241 sales personnel who had violated laws and regulations and 84 sales personnel who had violated internal rules as of November 18, 2020.
- 【Status of investigations of multiple policies】
- In regard to sales personnel investigations of multiple policies which have been implemented from last year※, we completed the investigations except for one case which we cannot investigate due to a salesperson's sick leave. We have identified 84 sales personnel who had violated laws and regulations as of November 18, 2020.
- Refer to the press release dated June 27, 2019.
- 【Investigations other than the investigations of multiple policies】
- In regard to the investigations other than the investigations of multiple policies, we have contacted customers in proportion to the amount of premiums and the number of times policies were rewritten through visiting by staff of Japan Post Insurance or sending letters to confirm customer
intentions.
Policies for high | Policy rewriting | |||||||
involving multiple | ||||||||
insurance premiums | ||||||||
changes of the | ||||||||
Status of confirmations | (more than | Total | ||||||
insured or the | ||||||||
200,000 yen) | ||||||||
of policy coverage | insurance type | |||||||
(*1) | ||||||||
(Visiting by staff) | (*2,3) | |||||||
Number of applicable | Number of | Number of | ||||||
applicable | applicable | |||||||
customers(%) | ||||||||
customers(%) | customers(%) | |||||||
Customers whose policy | 5,025 | (98) | 2,478 | (94) | 7,503 | (97) | ||
coverage and intentions have | ||||||||
been confirmed | ||||||||
Not in line with customers' | 2,138 | (42) | 940 | (35) | 3,078 | (40) | ||
intentions | ||||||||
Customers who request | 1,945 | (38) | 830 | (31) | 2,775 | (36) | ||
compensation for their | ||||||||
policies | ||||||||
Total | 5,103(100) | 2,650(100) | 7,753(100) |
- In regard to the investigations of multiple policies, we received 6,298 replies as of November 15, 2020 and continue responding 2,768 customers who request compensation for their policies sincerely.
Status of progress of policy investigations in order to regain customers' trust
- In regard to investigations by mail, we sent notification documents with reply questionnaires to customers and the staff of Japan Post Insurance have visited and have investigated customers who replied their policies are not in line with their intentions. We sent notification documents again to customers who had not replied to these questionnaires on July 30,
2020. | As of November 15, 2020 | ||||||
Policy rewriting | |||||||
involving single change | |||||||
Policies for high | of the insured or the | ||||||
insurance type | |||||||
insurance premiums | |||||||
Status of confirmations | or | Total | |||||
(more than 100,000 | |||||||
policy rewriting using a | |||||||
of policy coverage | yen) | system to shorten the | |||||
(Sending letters and visits by | (*4) | maturities of existing | |||||
staff) | contracts | ||||||
(*5,6,7) | |||||||
Number of | Number of | Number of | |||||
applicable | applicable | applicable | |||||
customers(%) | customers(%) | customers(%) | |||||
Customers whose policy | |||||||
coverage and intentions have | 8,551 | (99) | 18,161 | (99) | 26,712(99) | ||
been confirmed | |||||||
Not in line with customers' | 1,279 | (15) | 1,504 | (8) | 2,783(10) | ||
intentions | |||||||
Customers who request | |||||||
compensation for their | 1,077 | (12) | 1,151 | (6) | 2,228 (8) | ||
policies | |||||||
Customers who replied letter | 8,634(100) | 18,308(100) | 26,942(100) | ||||
Total | 14,059 | 32,814 | 46,873 |
*1. As of December 2019, policyholders aged 65 or older who have paid monthly premiums of 200,000 yen or more, and have had at least 1 policy which was cancelled in a short period thereafter during the period from April 2014 to December 2019.
*2. In the last five years, cases where sales personnel led the policyholders to change the insured at new enrollment without a change in policyholder, but the new policy was cancelled multiple times in a short period thereafter.
*3. Cases where sales personnel led customers to repeat rewriting insurance ⇔ annuity multiple times.
*4. As of December 2019, policyholders aged 65 or older who have paid monthly premiums of 100,000 yen or more, and have had at least 1 policy which was cancelled in a short period thereafter during the period from April 2014 to December 2019.
*5. In the last five years, cases where sales personnel led the policyholders to change the insured at new enrollment without a change in policyholder, but the new policy was cancelled at once in a short period thereafter.
*6. In the last five years, cases where sales personnel led customers to rewrite from annuity to insurance.
*7. Cases where sales personnel led customers to shorten the maturity of existing policies and apply for a new policy, but the underwriting of the new policy was declined.
*8. Customers who did not reply (The number of customers who had policies for high insurance premiums (more than 100,000 yen):5,425, the number of customers who had policies for other than high insurance premiums (more than 100,000 yen):14,506.)
- Follow-upsupport activities
- In regard to activities to regain customers' trust and to confirm policy coverage, we have confirmed 12,104 customers who experienced policy rewriting, etc. since April 2019. 9,685customers (approximately 80%) confirmed policy coverage, 3,434 customers (approximately
28%) requested compensation for their policy, and 2,078 customers' (approximately 17%) policies were compensated as of 15 November, 2020. - In addition, we sent letters for the policy coverage confirmation to about 34 thousands customers with whole life insurance where the customer and the insured are different and will execute for confirmation activities to customers with policies that were cancelled and rewritten after the payment period had ended.
- We have provided guidance to confirm the policy coverage by posting the policy coverage confirmation procedures on "Notification of Policy Coverage" sent to all policyholders in October 2020.
Status on Disciplinary Actions Against Sales Personnel and Their Managers at the Time | Material 3 | |||||||||||||||||||||||
【Disciplinary actions enforced by Japan Post Insurance | 【Personnel changes and disciplinary actions enforced by | |||||||||||||||||||||||
affecting the certification of sales personnel】 | Japan Post (Disciplinary actions according to employment rules)】 | |||||||||||||||||||||||
1 | Investigations of specified rewriting cases | ○ Disciplinary actions have been enforced against 405 sales personnel since the last | ||||||||||||||||||||||
announcement (August 26) (1,008 personnel on a cumulative basis), while disciplinary actions | ||||||||||||||||||||||||
○ 311 cases (the number of sales personnel involved: 413) of violations ofl aws and regulations | have been enforced against 85 managers at the time (321 managers on a cumulative basis) | |||||||||||||||||||||||
and 3,342 cases (the number of sales personnel involved: 2,219) of violations of internal rules, in | Status of disciplinary actions against sales personnel (for both investigations of specified | |||||||||||||||||||||||
which disciplinary actions affecting the certification of 2,622 sales personnel were finalized, while | rewriting cases and those of multiple policies) | (As of October 28) | ||||||||||||||||||||||
there are undetermined disciplinary action against 10 personnel in order to allow for appeals. | Personnel | Determined | Enforced on this | Cumulative total | ||||||||||||||||||||
○ | Sales personnel subjected to finalized disciplinary | actions affecting | their certification are | occasion | number enforced | |||||||||||||||||||
classified into 65 personnel subjected to termination of solicitation operations (including 12 | implicated | actions | Cases involving | Cases involving | ||||||||||||||||||||
multiple policies | multiple policies | |||||||||||||||||||||||
personnel who are involved in other cases and 44 retired personnel subjected to penalties | (reshown) | (reshown) | ||||||||||||||||||||||
equivalent to termination of solicitation operations), 1,086 personnel subjected to suspension of | Sales personnel | Punitive | 10 | 9 | 25 | 24 | ||||||||||||||||||
solicitation operations for 1 month to 6 months, and 1,471 personnel subjected to suspension of | Disciplinary | 【On this occasion】 | dismissal | |||||||||||||||||||||
Suspension of | ||||||||||||||||||||||||
solicitation operations for 2 weeks or 3 weeks. | (As of October 21) | actions to be | Specified rewriting | 4 | 1 | 12 | 6 | |||||||||||||||||
enforced as | cases: 395 personnel | duty | ||||||||||||||||||||||
Period of effective suspension of solicitation | Personnel | |||||||||||||||||||||||
Category of violation | soon as they | Cases involving multiple | Reduction of | 235 | 417 | |||||||||||||||||||
operations / disciplinary actions affecting | subjected to the | are | policies: 10 personnel | salary | - | 1 | ||||||||||||||||||
certification | actions* | determined | 【Cumulative total】 | Formal warning | 152 | - | 545 | - | ||||||||||||||||
Termination of | Specified rewriting | |||||||||||||||||||||||
58 | cases: 977 personnel | Admonition | 4 | 6 | ||||||||||||||||||||
solicitation | Cases involving | - | - | |||||||||||||||||||||
Violations of laws and | operations | multiple policies: 31 | ||||||||||||||||||||||
personnel | Caution | 0 | 3 | |||||||||||||||||||||
regulations: | 3 or 6 months | Strict warning | 354 | - | - | |||||||||||||||||||
413 personnel | Total | 405 | 10 | 1,008 | 31 | |||||||||||||||||||
Undetermined disciplinary action in order to allow | 1 | |||||||||||||||||||||||
for appeals | (Note) Including punitive dismissal of one sales personnel found to have engaged in inappropriate | |||||||||||||||||||||||
solicitation outside the investigations of specified rewriting cases and those of multiple policies | ||||||||||||||||||||||||
Termination of | • All actions are scheduled to complete by the end of November, except for those involving | |||||||||||||||||||||||
Future | ||||||||||||||||||||||||
solicitation | 7 | outlook | sales personnel yet to be notified of the qualification of in-depth investigation and | |||||||||||||||||||||
personnel requiring reinvestigation | ||||||||||||||||||||||||
operations | Status of disciplinary actions against managers of sales personnel, etc. (post office | |||||||||||||||||||||||
Violations of internal | 1 to 6 months | Strict warning | 732 | |||||||||||||||||||||
managers / GM within post offices, etc.) at the time | (As of October 28) | |||||||||||||||||||||||
rules: | ||||||||||||||||||||||||
2,219 personnel | 2 or 3 weeks | Exempted from | 1,471 | Personnel | Determined | Enforced on this | Cumulative total | |||||||||||||||||
actions | occasion | number enforced | ||||||||||||||||||||||
implicated | actions | Cases involving | Cases involving | |||||||||||||||||||||
Undetermined disciplinary action in order to allow | multiple policies | multiple policies | ||||||||||||||||||||||
9 | (reshown) | (reshown) | ||||||||||||||||||||||
Suspension of | ||||||||||||||||||||||||
for appeals | 1 | 2 | - | |||||||||||||||||||||
duty | - | |||||||||||||||||||||||
*Including the number of sales personnel who have already lost their certification, such as retirees. | ||||||||||||||||||||||||
Reduction of | 1 | 1 | ||||||||||||||||||||||
2 | Investigations of multiple policies (Cases implemented | salary | - | - | ||||||||||||||||||||
from last year*1) | Managers | Formal warning | 4 | 2 | 46 | 4 | ||||||||||||||||||
○ | Terminated solicitation operations of 76 personnel (including 9 retired personnel subjected | |||||||||||||||||||||||
Admonition | 29 | 209 | ||||||||||||||||||||||
to penalties equivalent to termination of solicitation operations), while suspending solicitation | - | 10 | ||||||||||||||||||||||
operations of 2 personnel for 3 or 6 months. | (As of October 21) | |||||||||||||||||||||||
Caution | 50 | - | 63 | - | ||||||||||||||||||||
Period of effective suspension of solicitation | Personnel subjected | |||||||||||||||||||||||
Category of violation | operations / disciplinary actions affecting | Total | ||||||||||||||||||||||
*2 | 85 | 321 | ||||||||||||||||||||||
certification | to the actions | 2 | 14 | |||||||||||||||||||||
Termination of | • Following the determination of | disciplinary actions | against sales | personnel, disciplinary | ||||||||||||||||||||
76 | Future | actions will be enforced in stages against the managers at the time | ||||||||||||||||||||||
solicitation | • In the meantime, investigations are underway to grasp the status of occurrence of | |||||||||||||||||||||||
Violations of laws and | operations | outlook | wrongdoing, as well as to determine whether there were neglected individual issues based | |||||||||||||||||||||
on voluntary reporting by sales personnel | ||||||||||||||||||||||||
regulations: | 3 or 6 months | Strict warning | 2 | • Investigations were completed in November, and disciplinary actions were enforced when | ||||||||||||||||||||
84 personnel | neglected issues were found | |||||||||||||||||||||||
Undetermined disciplinary action in order to allow for | 6 | (Reference) Other disciplinary actions (against managers at head office, branches, area | ||||||||||||||||||||||
appeals | headquarters, etc.) | |||||||||||||||||||||||
• On the first occasion (implemented in July), disciplinary actions have been enforced against 378 | ||||||||||||||||||||||||
*1 Refer to the press-release dated June 27, 2019. | ||||||||||||||||||||||||
*2 Including the number of sales personnel who have already lost their certification, such as | employees at head office, branches, area headquarters, etc. of Japan Post Insurance and Japan | |||||||||||||||||||||||
retirees. | Post 【Disciplinary actions enforced against 1,707 | personnel in total】 |
Material 4
Progress of
the Business Improvement Plan
December 3, 2020
JAPAN POST HOLDINGS Co., Ltd.
JAPAN POST Co., Ltd.
JAPAN POST INSURANCE Co., Ltd.
Progress of the Business Improvement Plan (As of the end of November 2020)
We are required to report the progress of the Business Improvement Plan which we submitted to regulators on January 31, 2020 periodically. We made our first report on March 13, 2020, our second report on June 12, 2020 and our third report on September 15, 2020 to regulators and announced them on same dates.
On an ongoing basis, we are required to report our progress to the regulators every 3 months. We plan to report and announce the progress as of the end of November by December 15, 2020.
Despite the ongoing impact of COVID-19, we have progressed as scheduled for the most part and implemented most measures originally planned as of the end of November.
The progress of each measure included in the Business Improvement Plan as of the end of November is following.
Establishing an appropriate sales promotion scheme
I. Creating a healthy corporate culture and establishing an appropriate sales promotion scheme
Blue・・・Japan Post Insurance
Yellow・・・Japan Post
Orange・・・Japan Post
Holdings
Contents of measures | Implementation | Implementation | Matters to be reported |
deadline | status | ||
(1) Review the code of conduct reflect the customer-first philosophy | |||
Formulation of the code of conduct for | February | Implemented | • Determined the details of the revisions to the solicitation |
customer-first business operations | 2020 | policy in February (revised in April) | |
Management and training for thoroughly | • Revised the basic policies for solicitation (Sales/Service Policy | ||
implementing customer-first | April 2020 | Implemented | and Basic Policies for Customer-first Business Operations) in |
- Clarifying basic policies for solicitation | April 2020 |
(2) Set the Standard of Japan Post Insurance Sales
Set the Standard of Japan Post Insurance | February |
sales | 2020 |
Implemented | • Set a "Standard of Japan Post Insurance sales" based on a |
solicitation policy that reflects the customer-first philosophy | |
(3) Instill a code of conduct based on the customer-first philosophy | ||||
• Conducted training on the significance and basic concept of | ||||
March | the "Standard of Japan Post Insurance sales" by the end of | |||
Training based on the Standard of Japan | Implemented | March 2020 | ||
Post Insurance sales | 2020 | • Follow Trainings were implemented from April 2020 to the | ||
end of September 2020 | ||||
• Continuously conduct training from October 2020 onward | ||||
Management and training for thoroughly | • Conducted various training that contributes to customer-first | |||
March | sales activities and comprehensive consulting services, | |||
implementing customer-first | ||||
Implemented | including enhancement of solicitation quality, reinforcement of | |||
- Training to improve knowledge and skills | 2020 | |||
technical knowledge, and improvement in communication | ||||
necessary for financial consulting | 1 | |||
skills |
Progress of the Business Improvement Plan (As of the end of November 2020)
Contents of measures | Implementation | Implementation | Matters to be reported |
deadline | status |
• In preparation for conducting training to help managers learn | |||
In stages | a new management approach and a management/instruction | ||
Review of the training system, etc. for | method based on coaching, with a view to shifting from | ||
from April | Implemented | ||
management with excessive focus on sales promotion | |||
managers | 2020 | ||
management. The training system and contents have been | |||
onward | |||
notified to branches in March 2020, and training has been | |||
implemented from June 2020 onward | |||
• Renamed Financial Services Division of post offices as | |||
"Financial Consulting Division" and established a new | |||
"Financial Consulting Administration Division" at each branch. | |||
Implemented an organizational revision to reform into a | |||
Development of the framework for | customer-first management structure in April 2020 | ||
April 2020 | Implemented | • Newly appointed Consulting Advisors, instructors capable of | |
promoting comprehensive consulting | providing instruction on comprehensive consulting, from April | ||
2020, revising the method for instructing the post office | |||
employees | |||
• Renamed the Sales Capabilities Development Institute as the | |||
"Consultant Training Center," making it report directly to the | |||
head office from April 2020 |
(4) Revision of the system including sales targets
Setting appropriate sales targets | |||
Shift from sales targets focused on new sales | |||
amounts (flow) to the sales targets focused on | • In order to regain customer trust as the top priority, sales | ||
the policies in force (stock) | March 2020 | (Implemented) | |
Setting sales targets commensurate with the | targets for the front-line employees will not be set for FY2020 | ||
sales capabilities, and revising target | |||
allocation method | |||
At the time | • At the time of setting the next sales targets, reflect the | ||
Reflecting the perspective of solicitation | of setting | In | |
the next | perspective of solicitation quality in the status check and | ||
quality in sales targets, etc. | preparation | ||
sales | verification by the department in charge | ||
targets | |||
• Newly established evaluation items and criteria for solicitation | |||
Personnel evaluation and reward | April 2020 | Implemented | quality in April 2020 for personnel evaluation of counter |
services personnel and sales personnel*, etc. | |||
* Renamed as consultants from April 2020 |
2
Progress of the Business Improvement Plan (As of the end of November 2020)
Contents of measures | Implementation | Implementation | Matters to be reported |
deadline | status | ||
Measures for policy rewriting (quasi-policy | |||
conversion) | |||
1) Revision of sales allowance* (half | |||
payment to non-payment) | March | • Implemented revision of sales allowance and expansion of the | |
2) Extension of the rewriting qualifying | Implemented | ||
2020 | rewriting qualifying period from April 2020 | ||
period (from 3 prior / 6 after to 12 prior | |||
/ 13 after) | |||
*Sales results have been revised to non- | |||
recording in August 2019 | |||
• As sales targets will not be set for FY2020, determined not to | |||
Incentive measures | April 2020 | Implemented | organize sales personnel commendation in FY2021 based on |
FY2020 results |
(5) Improvement of the mechanisms for reviewing coverage
Introduction of a conditional cancellation | January | • For the adjustment of insurance policy content or products | |
Implemented | from a customer-first point of view, introduced a conditional | ||
system | 2020 | ||
cancellation system | |||
• Applied for authority approval and acquired permission in | |||
Introduction of a policy conversion system | April 2021 | In | November 2020 |
preparation | • Preparing for system development with a view to April 2021 | ||
introduction | |||
Developing new products meeting our | Continuously | In | • Continuously considering the enhancement of product line-up |
consider from | for coverage-based products, which are in high demand from | ||
customers' insurance needs | April 2020 | preparation | |
customers and whose market is expanding | |||
onward |
3
Progress of the Business Improvement Plan (As of the end of November 2020)
First line (post offices, call centers, service centers, etc.)
II. Checks and controls
Contents of measures | Implementation | Implementation | Matters to be reported | |
deadline | status | |||
(1) Implement multi-layered checks from policy applications to the conclusion of a policy | ||||
Check contract applications | ||||
1) Expansion of the pre-checking function | ||||
for underwriting | 1), 2), 4) | |||
2) Expansion of scope of checking of all | ||||
March 2020 | • For 1), 2), and 4), implemented the expansion of scope* in | |||
cases by post office managers | ||||
3) Implementation of the verification of | 3), 5) | the revision for the term ended April 2020 | ||
customers' intentions by the application | For 3) and 5), implemented in January 2020 | |||
call center | January | Implemented | • For 6), reviewed that we started sending introduction for the | |
4) Expansion of target of checking in | 2020 | confirmation of application coverage in October 2020 and | ||
underwriting process | ||||
6) | started the part of confirmation tasks by branch employees | |||
5) Implementation of the verification of | ||||
customer's intentions by the cancellation | October | other than service assistant | ||
call center | 2020 | |||
6) Review follow-upcheck (thanks-call, | ||||
letters, SA investigation) | ||||
System improvements | • Established a framework to confirm past histories, including | |||
Increasing sophistication of customer | ||||
enrollment of existing policies, at the time of solicitation in the | ||||
information management | ||||
March 2020 | revision for the term ended April 2020. We set up a checking | |||
Establishing a system framework capable | Implemented | |||
onward | function for customer policies and past cancellation histories | |||
of easily identifying policy enrollment and | ||||
in the sales procedure confirmation process (pre-checking | ||||
cancellation histories at the time of | ||||
etc.) in October 2020 | ||||
solicitation | ||||
• Added items required to be recorded by employees to the | ||||
Review of items listed in the sales activities | January | Implemented | sales activities log, clarified the entry rules, and strengthened | |
log | 2020 | the management function focused on solicitation quality by | ||
clarifying items to be confirmed by managers | 4 | |||
Progress of the Business Improvement Plan (As of the end of November 2020)
Second line (head office, etc.)
II. Checks and controls
Contents of measures | Implementation | Implementation | Matters to be reported |
deadline | status | ||
(2) Strengthen systems to realize appropriate solicitation management | |||
• Implemented a revision of solicitation quality instruction specialists | |||
Strengthening of insurance solicitation | and organizations related to the structure of Financial Operations | ||
April 2020 | Implemented | Divisions at branches in April 2020, for enhancing the insurance | |
management framework at Japan Post branches | |||
solicitation management framework at branches in order to improve | |||
solicitation quality | |||
Being | • Continuously conducting the verification of the management | ||
Verification of the management framework for | implemented | Partially | framework for insurance solicitation quality at all post offices by the |
from | employees of the Auditors Office* (resuming inspections, etc., which | ||
insurance solicitation quality | implemented | ||
November | had been suspended due to the impact of COVID-19, in July) | ||
2019 | *Renamed as Inspection Office in April 2020 | ||
Review of functions of the Japan Post Insurance | |||
head office | • Implemented the transfer of the first-line operations such as the | ||
Establishing a sales structure based on ensuring | |||
improvement of solicitation flow to sales-related departments | |||
solicitation quality by transferring the first-line | |||
(established Solicitation Quality Improvement Office in the Sales | |||
operations such as the improvement of solicitation | April 2020 | Implemented | |
Planning Division) and concentration of inspections and | |||
flow to sales-related departments | |||
investigations to the Compliance Investigation Office (newly | |||
Strengthening investigation systems by | |||
established) in April 2020 | |||
concentrating the command function for the | |||
investigation operations | |||
Verification of effectiveness of measures by the | |||
second line at the Japan Post Insurance head | |||
office | |||
The second line (Solicitation Management | • Verified the solicitation checking framework from the perspective of | ||
Administration Division) conducts verification of the | April 2020 | ||
Implemented | prevention and early detection in March 2020, and formulated | ||
effectiveness of each measure implemented based | onward | ||
improvement measures | |||
on the Business Improvement Plan, results of | |||
which are reported to various meeting bodies, and | |||
provide recommendations for improvements as | |||
necessary | |||
Review of functions of the Japan Post Insurance | • Branches are in charge of confirmation activities about customer | ||
branches | July 2020 | Implemented | |
Strengthening the structure related to investigating | onward | feedback, etc. (Implemented in October 2020) | |
the status of solicitation and proper solicitation |
5
Progress of the Business Improvement Plan (As of the end of November 2020)
Contents of measures | Implementation | Implementation | Matters to be reported |
deadline | status | ||
• We abolished the role of Area Instructor and established the role of | |||
Enhancing guidance to Area Instructors, review | July 2020 | Training Specialist responsible for ensuring that the staff of Agency | |
Implemented | Relations Division and Post Office to implement appropriate | ||
of their roles | onward | ||
solicitation which reflects the customer-first philosophy in August | |||
2020 | |||
(3) Controls including increasing the strictness of criteria for fact-finding and disciplinary action | |||
More strict standards to determine | |||
incidents and disciplinary actions | |||
1) Conducting fact-finding that does not rely | |||
on confession | • Revised related rules in March 2020 and applied them in April | ||
2) Enhancement of investigation cooperation | |||
(self-declaration) system | • With respect to 5), registered the employees with | ||
3) Addition of "suspension of solicitation" and | March 2020 | Implemented | questionable solicitation quality on the pre-checking function |
"warning" to disciplinary actions for sales | for underwriting starting on April 20, 2020, and implemented | ||
personnel | follow-up including restriction on preparation of coverage | ||
4) Clarification of managerial responsibility | proposal for a certain period and confirmation by managers | ||
and request for disciplinary actions | |||
5) Selection of "employees with questionable | |||
solicitation quality" and implementation of | |||
"follow-up on sales personnel" | |||
• With respect to disciplinary actions against the wrongdoers | |||
Personnel changes and disciplinary actions | In stages | and related parties in the investigations of specified rewriting | |
Implemented | cases, disciplinary actions have been implemented in stages | ||
in relation to the investigations of specified | after the | ||
completion of | in stages | after the wrongdoing was confirmed (the first and second | |
rewriting cases | |||
investigation | disciplinary proceedings were announced in July and August, | ||
respectively and the third was announced in October) | |||
System improvements | August | • Trial implementation by post office managers was started in | |
March 2020 and trial implementation by certain sales | |||
Voice recording and maintaining record of | 2020 | Implemented | |
personnel was started on April 20, 2020. We carried out full | |||
solicitation activities | onward | ||
implementation for all sales personnel on August 24, 2020 | |||
6
Progress of the Business Improvement Plan (As of the end of November 2020)
Third line (Internal Audit Department)
II. Checks and controls
Contents of measures | Implementation | Implementation | Matters to be reported |
deadline | status | ||
(4) Strengthen Internal Audit Department | |||
Reinforcement of internal controls | |||
1) Reinforcement of involvement of the | |||
Audit Committee in the Internal Audit | • With respect to 1), decided on the revision of related rules in | ||
Department | |||
March | |||
Prior approval of important personnel | 1) March | ||
• With respect to 2), established a framework in February, in | |||
affairs in the Internal Audit Department | 2020 | which instructions for investigations can be given to the | |
2) Reinforcement of functions of the Audit | 2) February | Implemented | |
Internal Audit Department as needed, based on reports from | |||
Committee | 2020 | ||
executive officers in charge, and discussions on the actual | |||
In addition to receiving reports on the | onward | ||
situation can be held based on the reports on the | |||
status of solicitation, etc. and instructing | |||
investigations | |||
further investigations as needed, provide | |||
necessary advice, etc. to executive | |||
officers in charge |
7
Progress of the Business Improvement Plan (As of the end of November 2020)
Oversight by management
III. Information sharing and governance
Contents of measures | Implementation | Implementation | Matters to be reported |
deadline | status | ||
(1) Thoroughly implement the PDCA cycle | |||
• Established the telephone consultation desk for Japan Post | |||
Insurance, etc. manned by Consumer Affairs Consultants to | |||
Establishment of the telephone consultation | Implemented | establish an environment in which Japan Post Insurance | |
policyholders can consult with peace of mind | |||
desk for Japan Post Insurance, etc. by | in August | Implemented | |
• Press release was published on July 31 to the effect that the | |||
Consumer Affairs Consultants | 2020 | ||
telephone consultation desk was scheduled to start receiving | |||
consultations from August 17, 2020 (the status of usage is as | |||
per the Attachment) | |||
Establishment of the "Contact Point for | Implemented | • Status, etc. of consultations are summarized each month and | |
reported to Group Customer Satisfaction Promotion Liaison | |||
Business Consultation for Japan Post Group | in February | Implemented | |
Meeting, etc. (September 2, October 14 and November 5, | |||
Employees" | 2020 | ||
2020) | |||
Establishment of external point of contact | Implemented | • Appropriately respond to contacted cases, while the status of | |
Implemented | usage is summarized and reported to the Group Compliance | ||
exclusively for financial services | in March | Committee, etc. (September 28, October 27 and November | |
2020 | |||
30, 2020) | |||
Hearing the voices of our employees | |||
1) Japan Post Insurance suggestion box | • In regard to 1), we started from December 2019. For the | ||
Promoting efforts for corporate culture | 1) | improvement of visibility and visualization of agreement with | |
reform based on employee opinions | respect to suggestions etc., we have constructed a system | ||
through the suggestion box | December | since July 2020 | |
2019 | Implemented | ||
2) Dialogue with Management | • In regard to 2), the Dialogue had been started in the late | ||
2) March | |||
The management team visits the area | February 2020, was subsequently suspended in light of the | ||
2020 | |||
headquarters, branches, and service | growing effects of COVID-19 and was re-started by a web | ||
centers to understand opinions of the front- | meeting on May 28, 2020 | ||
line employees through dialogue |
8
Progress of the Business Improvement Plan (As of the end of November 2020)
Contents of measures | Implementation | Implementation | Matters to be reported | |
deadline | status | |||
• Regarding establishment and utilization of the "Contact Point | ||||
for Improper Financial Sales," dissemination and status of | ||||
Expansion of whistleblowing system | March 2020 | Implemented | instillation are to be confirmed through compliance training | |
and e-learning. However, due to the impact of COVID-19, | ||||
part of the said training, etc. was implemented in the second | ||||
quarter (July | September) | |||
• Status of usage of the whistleblowing contact points, including | ||||
Sharing information concerning | Implementing | the number of whistleblowing reports, is summarized on a | ||
Implemented | monthly basis, and reported to the Group Compliance | |||
whistleblowing contact points | since October | Committee held once a month in principle (September 28, | ||
2019 | ||||
October 27 and November 30, 2020), sharing information | ||||
among the Group companies |
(2) Strengthen governance on companies and the Group
Reinforcement of internal controls | |||
Establishment of "deliberation" in the | |||
operation of the Board of Directors | March 2020 | Implemented | • Decided on revisions to the related rules in March |
In addition to establishing "deliberation," | |||
review the scope of matters to be resolved | |||
• 1) Regarding the reexamination of the memorandum | |||
Decision-making process in relation to | 1) | regarding the rules on the Group administration, a decision | |
was made on the draft of the revised memorandum by the | |||
important matters | Implemented | ||
end of March, which took effect on April 1, 2020 | |||
1) Revision to the memorandum regarding | in April 2020 | ||
Implemented | • 2) Various committees and liaison meetings that have been | ||
the rules on the Group administration | 2) | ||
Implemented | established in the previous fiscal year, including the Group | ||
2) Establishment and enhancement of | |||
by December | Compliance Committee, will be held once a month in principle, | ||
committees and liaison meetings | 2019 | ||
and their status will be reported to the Management | |||
Committee, etc. |
9
Progress of the Business Improvement Plan (As of the end of November 2020)
Contents of measures | Implementation | Implementation | Matters to be reported |
deadline | status |
• 1) Apart from the reporting on management information of | |||
1) | regular items, discussions are carried out on the Group's | ||
important issues, including the status of voices from | |||
Demonstration of governance function | Implementing | ||
since | customers and employees received at each company and the | ||
1) Enhancing functions of the "Group | December | status of operational risks | |
Steering Committee" | 2019 | Implemented | |
• 2) Reported issues and concerns regarding sales and | |||
2) Enhancing functions related to sales and | 2) | ||
Implementing | operations of each business subsidiary to senior management | ||
operations at Japan Post Holdings | |||
since January | (Reported on "leakage case of corporate information of our | ||
2020 | |||
business partners," "delivery work of Kuroneko DM-Bin in | |||
certain areas," etc.) | |||
• Held the Group Compliance Committee on a monthly basis | |||
Implementing | (September 28, October 27 and November 30, 2020) to | ||
Establishment of the Group Compliance | Implemented | share information on and discuss the status of the improper | |
Committee | since October | solicitation incidents discovered by the investigations of Japan | |
2019 | |||
Post Insurance policies, as well as major incidents and | |||
initiatives related to compliance and risks | |||
• Based on the deliberation at the Compliance Committee of | |||
Follow-up on the opinions, etc. made at the | Implementing | Japan Post Holdings (held on a quarterly basis) and report to | |
Compliance Committee of Japan Post | since | Implemented | the Management Committee, reported the status of |
December | |||
Holdings | 2019 | promotion of the Group compliance to the Board of Directors | |
(November 13, 2020) |
10
Progress of the Business Improvement Plan (As of the end of November 2020)
Contents of measures | Implementation | Implementation | Matters to be reported | |
deadline | status | |||
• Implementing on-site monitoring at post offices, etc. | ||||
• Total number of sites for monitoring from September to | ||||
November was as follows: | ||||
[Japan Post] | ||||
Post offices | 30 locations | |||
Financial consulting divisions | 10 locations | |||
Regional offices | 2 locations | |||
[Japan Post Insurance] | ||||
Branches | 8 locations | |||
Area headquarters | 2 locations | |||
• Number of sites for monitoring from December to March | ||||
Implementing | (scheduled) is as follows: | |||
Implementation of on-site monitoring at | Implemented | [Japan Post] | ||
post offices, etc. by Japan Post Holdings | since January | Post offices | 40 locations | |
2020 | ||||
Financial consulting divisions | 6 locations | |||
Regional offices | 4 locations | |||
[Japan Post Insurance] | ||||
Branches | 8 locations | |||
Area headquarters | 4 locations | |||
• Implementation results of the on-sitemonitoring for the | ||||
second quarter of FY2020 was reported to the Group Internal | ||||
Audit Liaison Committee (September 30, 2020) and the | ||||
Management Committee (October 13, 2020), etc., while the | ||||
results (preliminary figures) of the prior questionnaire | ||||
regarding the monitoring was also reported to the Group | ||||
Internal Audit Liaison Committee on a monthly basis | ||||
• Status of audit activities in the second quarter regarding the | ||||
"Basic Policies for Customer-first Business Operations," etc. | ||||
were reported to the Group Internal Audit Liaison Committee | ||||
Enhancement of the Group Internal Audit | Implementing | (September 30, 2020) | ||
since | Implemented | • Results of the on-site monitoring as well as the status of | ||
Liaison Committee, etc. | November | |||
audits on the "Basic Policies for Customer-first Business | ||||
2019 | ||||
Operations" during the third quarter, are scheduled to be | ||||
reported to the Group Internal Audit Liaison Committee for | ||||
the month of December |
11
Progress of the Business Improvement Plan (As of the end of November 2020)
Contents of measures | Implementation | Implementation | Matters to be reported |
deadline | status |
- Monitor improvement measures and regularly announce the progress
- Announced the "pledge to regain customer trust" on September 11, 2020 in line with the announcement
Delivery of the message from the top | Start date | regarding the implementation of business operations for | |
of business | Implemented | regaining trust. In line with the start of business | |
management | |||
operations | operations for regaining trust, shared an email and a video | ||
that deliver messages from the four Group company | |||
presidents | |||
Managing the | • JP Reform Execution Committee meeting was held on | ||
progress of the | September 3 and October 21, 2020 | ||
improvement | |||
Initiatives for managing the progress of | measures | • Departments in charge of each measure explained the | |
Implemented | |||
progress of the Business Improvement Plan (improvement | |||
the improvement measures and achieving | since | Implemented | |
February | measures) for verification, and the measures of Japan Post | ||
customer-first business operations | |||
Achieving customer- | Holdings, which have all been implemented, are scheduled | ||
operations | |||
first business | |||
Implemented | to be submitted at the seventh meeting of the JP Reform | ||
since April | Execution Committee to be held on December 3, 2020 | ||
• The Management Philosophy handbook was prepared to | |||
once again instill the Management Philosophy among all | |||
employees, copies of which were distributed to all | |||
employees within August | |||
Initiatives for instilling the Management | Implemented | Implemented | • Whenever copies of the Management Philosophy handbook |
Philosophy | since April | are distributed, the video message (DVD) for the | |
Management Philosophy handbook training, lectured by | |||
the President of Japan Post Holdings, must be viewed to | |||
ensure that the importance of the Management Philosophy | |||
is disseminated |
12
Progress of the Business Improvement Plan (As of the end of November 2020)
[Reference] Progress by company
1) End of August | 2) End of November | 3) End of February | ||||||
Item | (estimated) | |||||||
(Reported on | (To be reported by | |||||||
September 15, 2020) | December 15, 2020) | (To be reported by | ||||||
March 15, 2020) | ||||||||
Partially | Implemented | Partially | Implemented | Partially | Implemented | |||
implemented | implemented | implemented | ||||||
1. | Actions on sales personnel (6 measures) | 0 | 6 | 0 | 6 | 0 | 6 | |
Japan | 2. | Sales promotion framework (7 measures) | 3 | 3 | 1 | 5 | 1 | 5 |
Insurance | 3. | Organizational culture (9 measures) | 1 | 8 | 1 | 8 | 1 | 8 |
Post | 4. | Solicitation management framework (22 | 7 | 14 | 4 | 17 | 3 | 18 |
measures) | ||||||||
5. | Governance (14 measures) | 6 | 8 | 5 | 9 | 4 | 10 | |
Total (58 measures) | 17 | 39 | 11 | 45 | 9 | 47 | ||
1. | Actions on specified rewriting cases (2 | 0 | 2 | 0 | 2 | 0 | 2 | |
measures) | ||||||||
Japan | 2. | Establishment of sales promotion framework (10 | 1 | 8 | 1 | 8 | 1 | 9 |
measures) | ||||||||
3. | Development of organizational culture (18 | 0 | 18 | 0 | 18 | 0 | 18 | |
Post | measures) | |||||||
4. | framework (20 measures) | 1 | 18 | 1 | 18 | 1 | 18 | |
Establishment of solicitation management | ||||||||
5. | Enhancement of governance (23 measures) | 2 | 20 | 1 | 21 | 1 | 21 | |
Total (73 measures) | 4 | 66 | 3 | 67 | 3 | 68 | ||
1. | Decision-making process on important matters | 0 | 1 | 0 | 1 | 0 | 1 | |
(1 measure) | ||||||||
Japan | ||||||||
2. | Demonstration of governance functions (1 | 0 | 1 | 0 | 1 | 0 | 1 | |
measure) | ||||||||
Post | 3. | Enhancement of Group compliance functions (6 | 0 | 6 | 0 | 6 | 0 | 6 |
measures) | ||||||||
4. | Enhancement of Audit Division functions (2 | 0 | 2 | 0 | 2 | 0 | 2 | |
Holdings | ||||||||
measures) | ||||||||
5. | Establishment of framework for instilling the | |||||||
Management Philosophy and radical | 2 | 0 | 0 | 3 | 0 | 3 | ||
enhancement of governance for implementing | ||||||||
improvement measures (3 measures) |
Total (13 measures) | 2 | 10 | 0 | 13 | 0 | 13 | 13 |
Status of Reception at the Telephone Consultation Desk for Japan Post Insurance,
etc. by Consumer Affairs Consultants
Material 4 Attachment
813 consultations were received by the end of November at the "telephone consultation desk for Japan Post Insurance, etc. by Consumer Affairs Consultants" (established on August 17).
The number and details of consultations as of the end of November are as follows: 【Details of consultations】
Category | Response | Consultation examples |
Number of
consultations
- Cases referred to Japan Post Insurance from the desk for solutions
- Cases referred to Japan Post Insurance from the desk asking to call back the caller
- Cases referred to Japan Post Insurance from the desk for sharing of information
- Cases handled solely by the desk
Request for policy cancellation, request for policy avoidance, etc.
Request for policy avoidance
Inquiry about the procedure for claiming insurance benefits, request for refund, request for disciplinary actions against sales personnel
Inquiry about the insurance coverage / procedure to receive payment, complaint about insurance coverage, inquiry regarding whether it is possible to conclude a policy
80
3
18
687
5 | Others | Inquiry about variable annuity, etc. | 25 | ||||
813 cases in total | |||||||
【Trend in the number of consultations】 | |||||||
Month | August | September | October | November | Total | ||
Number of | 49 | 203 | 297 | 264 | 813 | ||
consultations | |||||||
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Japan Post Holdings Co. Ltd. published this content on 03 December 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 December 2020 07:42:03 UTC